NEW DELHI, Jan 25 – The battle for control of Indian financial services firm Religare Enterprises (RELG.NS) has taken a dramatic turn, with U.S. businessman Digvijay “Danny” Gaekwad entering the fray. Gaekwad has made a competing offer to acquire a 26% stake, upping the stakes in an already contentious fight involving one of India’s most prominent billionaire families.
The Burman family, founders of consumer goods giant Dabur India (DABU.NS), increased their stake in Religare to nearly 25% in September 2023. Their move triggered an open offer process to buy an additional 26% of the company, a strategy aimed at cementing their presence in India’s booming financial services sector. The open offer, set to begin on Jan. 27, offers 235 rupees per share, a price independent directors of Religare recently flagged as undervalued.
Enter Florida-based entrepreneur Gaekwad, whose firm submitted a proposal to India’s market regulator SEBI late on Friday, seeking permission to launch an open offer at 275 rupees per share—a 17% premium over the Burmans’ offer. Gaekwad’s unexpected move has shifted the dynamics of the takeover battle and could set the stage for a high-stakes bidding war.
Religare shares closed at 249.40 rupees on Friday, giving the company a market capitalization of 81.83 billion rupees ($949.3 million).
While Gaekwad and the Burmans remain silent for now, the financial world is abuzz with speculation. Should the Burmans succeed in their bid, they will face stiff competition from other heavyweight families dominating India’s financial services landscape, including Mukesh Ambani’s Jio Financial Services (JIOF.NS) and the family-run Bajaj Finance (BJFN.NS).
The Burmans’ bid, however, has hit several roadblocks. Earlier this week, a minority shareholder holding just 500 shares filed a petition with the Delhi High Court to halt the open offer, citing concerns over the process. On Tuesday, the court issued a notice to the Burmans and SEBI, stating that any further action, including the open offer, would be contingent upon the lawsuit’s outcome.
As the clock ticks, all eyes are on SEBI’s response to Gaekwad’s proposal and how the Burmans navigate the mounting legal and regulatory hurdles. With both bids now in play, Religare’s future hangs in the balance, making this a closely watched battle that could reshape India’s financial services sector.
