The Burman family acquired a controlling stake in Religare Enterprises Limited (REL) on Thursday, February 20, after the completion of the open offer and is designated as its promoters. Its shareholding post the acquisition deal stand at 83,201,819 equity shares representing 25.16 per cent in the company.
The Burmans, who founded and control the leading fast moving consumer goods (FMCG) giant Dabur India, got the central bank’s approval to buy more shares in December. “Our immediate priority is to instill stability, strengthen governance, and drive sustainable growth at the company,” a report by news agency Reuters said, quoting the official spokesperson of the group.
The Burmans had made an open offer for acquisition of up to nine crore equity shares representing 26 per cent of REL’s stake from public shareholders. The acquisition has been made through Burman family owned entities M.B. Finmart Private Limited (MFPL), Puran Associates Private Limited (PAPL), VIC Enterprises Private Limited (VIC), and Milky Investment & Trading Company (MITC).
Religare vs Burmans
Burmans’ open offer of ₹2,116 crore for the acquisition of the additional 26 per cent stake in REL has received a tepid response. As per the data of open offer, against 90,042,541 shares (26 per cent), only 231,025 shares (0.07 per cent) were tendered. According to the data, the open offer closed on February 13 and the date of payment of consideration was February 17, 2025.
The tender price for open offer was fixed at ₹235 per share. Following the open offer, the shareholding of four entities would rise to 24.02 per cent. The Burman Group, through four entities — Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company — collectively owned 20.15 per cent stake in REL.
The Burman family – in September 2023 announced a ₹2,116-crore open offer to REL shareholders to acquire up to 26 per cent stake in the company. Four entities in January 2024 bought a 3.6 per cent stake in diversified financial services group REL for ₹277 crore through open market transactions.
The three entities — Puran Associates, Vic Enterprises and M B Finmart — of the Burman family acquired the shares of Religare Enterprises. According to reports, Puran Associates is owned by Anand Burman and Minnie Burman, while V C Burman owns Vic Enterprises. M B Finmart is owned by Mohit Burman.
Soon after the open offer bid, Burmans complained to capital markets regulator Securities and Exchange Board of India (SEBI) for the violation of insider trading rules by then chairperson Rashmi Saluja and appointment of board of her choice.
However, it was contested by REL independent directors, who raised red flags alleging fraud and other breaches by Burman family entities and approached regulators, including SEBI, the RBI, and the Insurance Regulatory and Development Authority. Earlier this month, REL Executive Chairperson Saluja was ousted as director by the company’s shareholders. She ceased to be the non-independent director with effect from February 7, 2025.
