Burmans now a step closer to Religare, but there's more to go

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Subscribe to enjoy similar stories. The billionaire Burman family of Dabur Ltd is a step closer to buying Religare Enterprises Ltd, with the insurance regulator stating it has no objection to the proposed acquisition. Religare, which is locked in a battle with the Burman family, initially did not act on the proposal, but applied to the Insurance Regulatory and Development Authority of India (Irdai) after the Securities Appellate Tribunal (SAT) stepped in.

Irdai was approached since Religare runs the insurance company Care Health Insurance. "Irdai does not have any objection to this since the effective shareholding in Care Health Insurance Ltd does not change," a person aware of the matter said on the condition of anonymity. Irdai also asked Religare to approach the Reserve Bank of India (RBI) for approval, the person said, since Religare is an non-banking financial company (NBFC) under RBI oversight.

With the Competition Commission of India (CCI) already approving the proposal, the deal now needs clearance from RBI and the Securities and Exchange Board of India (Sebi) before Burmans can make an open offer for Religare. After initially welcoming the Burmans' proposal last year, Religare had pushed back, stating the open offer price was too low. The matter has since deteriorated into allegations and counter-allegations, including charges of hefty stock options granted to Religare chief Rashmi Saluja, and Burmans' fit and proper status.