Burman family, which is seeking to take over Religare Enterprises Ltd (REL), has accused the latter’s management of blocking its planned open offer in a letter to the Reserve Bank of India (RBI). Religare denied receiving any intimation from the central bank about any communication regarding this matter.
REL led by chairperson Rashmi Saluja has sought to obstruct the applications that need to be sent to the regulators for changes in shareholding, control and management of REL, said the letter by the Burmans, promoters of the Dabur Group.
The action by the REL management “impedes the ability of regulatory authorities to perform their obligations,” the Burmans said in the letter, a copy of which ET has seen. “It also costs the public shareholders of Religare.”
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On February 1, the Burmans raised their stake in REL to 25.18%, past the threshold for triggering an open offer for an additional 26% of the company, by buying 13.2 million shares from the open market in a block deal for Rs 308.8 crore, increasing its holding from 21.18%. The successful completion of an open offer will give the Burmans a stake in excess of 51%.
For the open offer to proceed, the RBI and the Securities and Exchange Board of India (Sebi) have to give their approvals, which are pending. The RBI told the