SC gives Gaekwad day more to deposit INR 6 bln for Religare Ent open offer
This story was originally published at 20:58 IST on 12 February 2025
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NEW DELHI – In a relief to US investor Danny Gaekwad Developments & Investments, which has made a competing offer for stake in Religare Enterprises Ltd., the Supreme Court Wednesday extended till 1400 IST Thursday the time given to deposit INR 6 billion as a demonstration of its bona fides. Earlier, the court had asked Gaekwad to deposit the money by Wednesday.
Digvijay 'Danny' Gaekwad told the court Wednesday that he had tried to transfer the money but could not do so without permission from the Reserve Bank of India. This was why he could neither furnish a bank guarantee nor a cash deposit, he explained. "Without going into these controversies, we permit the applicant to deposit 600 crores (INR 6 billion) by way of transfer to a bank account nominated by the RBI," said a bench headed by Chief Justice of India Sanjiv Khanna. The court said all other terms and conditions mentioned in its previous order would remain unaffected.
On Feb. 7, the top court had said that Dabur India Ltd. promoter Burman family's open offer to acquire an additional 26% stake in Religare Enterprises, which was to close Friday, will continue till Wednesday. If Danny Gaekwad Developments deposits INR 6 billion as stipulated by the Securities and Exchange Board of India's regulations, the Burman family's offer will remain open till three days after the market regulator decides on the application from Danny Gaekwad Developments to reconsider its competing offer and exemptions for the same, the court had said. If Danny Gaekwad Developments does not deposit INR 6 billion, then the court's order stands vacated automatically, it had said.
The apex court was hearing a petition by Religare Enterprises minority shareholder Sapna Govind Rao and Danny Gaekwad Developments. Rao had sought direction to SEBI and the RBI to evaluate the competing offer by Danny Gaekwad Developments. The offer from Danny Gaekwad Developments values the company's shares at INR 275, a premium of 17% to the Burman family's offer of INR 235 per share. This necessitated a reconsideration of the acquisition process to protect the interests of minority shareholders, Rao had said. The US investor asked that the market regulator consider afresh its proposal.
Last month, SEBI had returned the open offer by Danny Gaekwad Developments, saying it did not conform to the regulator's exemption application rules under the takeover code. Gaekwad had said he could not file the competing offer within the mandatory 15 days of the Burman family's public announcement in September 2023 because of legal and regulatory complexities.
On Wednesday, shares of Religare Enterprises closed 3.5% lower at INR 232.43 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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