sebi
Published on 14 July 2025
Burman Family Seeks Religare Acquisition Amid Legal Challenges and Competing Bids
Religare Takeover: Burman Family Inches Closer to Control Amid Legal Overhang
New Delhi | July 2025 After nearly a year of legal wrangling, shareholder activism, and regulatory vetting, the Burman family’s bid to take over Religare Enterprises appears to have crossed a critical threshold. With rival offers sidelined and regulatory nods in place, the promoters of Dabur are now poised to consolidate their position at the helm of the financial services group.
The Anatomy of a Tense Takeover
The Burman Family’s Strategic Move
In late 2023, the Burmans initiated an open offer to acquire an additional 26% stake in Religare at ₹235 per share, pegging the total outlay at just over ₹2,100 crore. The offer, triggered under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations after their holding breached the 25% threshold, soon attracted close scrutiny—not just from regulators but also from competing interests.
The Reserve Bank of India (RBI) cleared the proposal in December 2024, with SEBI and other agencies following suit, effectively greenlighting the family’s push to assume promoter status.
Danny Gaekwad’s Late-Stage Challenge
Into this fray stepped US-based businessman Digvijay Laxmansinh Gaekwad—better known as Danny Gaekwad—who offered a counterbid of ₹275 per share. The bid, while more generous on paper, carried caveats. Chief among them: a Supreme Court mandate requiring Gaekwad to deposit ₹600 crore in escrow by February 12, 2025. The deadline passed without the funds materialising.
SEBI, noting procedural lapses and the absence of regulatory clearances, rejected the counter-offer, calling it non-compliant. In its February order, the regulator flagged Gaekwad’s application as lacking seriousness and possibly aimed more at disruption than at delivering shareholder value.
Shareholder Discontent and Legal Fallout
Despite SEBI’s firm stance, some investors resisted. A minority shareholder, Sapna Rao, filed a special leave petition arguing that Gaekwad’s bid—while flawed in execution—would have offered superior value to public shareholders. The Burman camp countered that the rival bid was little more than a delay tactic.
Separately, the Securities Appellate Tribunal (SAT) granted Religare Enterprises more time to comply with SEBI’s order on the Burman family’s open offer. The next hearing is scheduled for August 20, adding a layer of procedural uncertainty even as the Burman stake inches upward.
Boardroom Shake-Up: The Rashmi Saluja Episode
The governance narrative took another dramatic turn when 97% of shareholders voted against the reappointment of Dr. Rashmi Saluja, the company’s long-time Executive Chairperson. Saluja subsequently approached the Delhi High Court, arguing that her contract shielded her from such removal and that the shareholder resolution violated her rights.
Religare’s board, following consultations with the RBI, confirmed her exit. The company also instructed its subsidiaries to remove her from their respective boards—pointing to a regulatory stipulation that any board reshuffle involving over 30% of a group NBFC or bank must reflect across all entities.
Where Things Stand Now
With the rival bid sidelined and regulatory clearances secured, the Burman family now holds more than 25% of Religare and has been formally recognised as its new promoter group. However, the open offer received a lukewarm response from public shareholders, with only a modest number of shares being tendered.
Despite this, the Burmans have begun engaging closely with the board on matters of governance, risk management, and strategic realignment. Their stated focus remains long-term value creation, underpinned by improved internal controls and greater operational discipline.
Summary: The Religare Bidding Saga at a Glance
| Bidder | Offer Price/Share | Offer Value | Escrow Requirement | Regulatory Outcome | Status |
|---|---|---|---|---|---|
| Burman Family | ₹235 | ₹2,116 crore | Not specified | RBI & SEBI approved | Offer proceeding |
| Danny Gaekwad | ₹275 | ₹5,000 crore | ₹600 crore (not met) | SEBI rejected; SC noted lapse | Disqualified |
Looking Ahead
While the courts continue to hear challenges related to shareholder rights and board-level transitions, the momentum has clearly shifted in favour of the Burmans. Their steady, regulation-led approach—combined with an absence of credible competing bids—now places them in a strong position to define Religare’s future.
As litigation winds down and governance reforms take hold, investors will be watching closely to see whether the new promoters can translate control into sustained performance and restore faith in a company long overshadowed by controversy.