Burmans yet to designate their representative on REL board
Religare Enterprises (REL) contends that the Burman family did not designate any representative to the board following criticism from the Burman family, a major stakeholder, about governance problems after the REL board's reluctance in incorporating shareholder members.
«The Burman family has not put forth any nomination for the board of REL,» said an REL spokesperson.
However, a Burman family spokesperson told ET that REL had assured shareholders seats on the board, but as of now, no appointments have been made.
«We understand that apart from us, other large shareholders were also promised seats on the REL board, but no one has been put on the board to date despite raising this matter several times earlier,» he said. «The fact is that there is no shareholders' representation on the board even though REL is a 100% public shareholder-led company.»
REL's current board comprises six members, including chairperson Rashmi Saluja, who has an executive role, and five independent directors.
Burman's family had, through various entities, accumulated a 21.5% stake in REL by August.
In September, it bought another 5.27% stake, triggering a mandatory open offer to buy an extra 26% stake from the public. The open offer was made at ₹235 on September 25, when the prevailing stock price was ₹256.
Shares of REL declined 20% since the announcement of the open offer and closed at ₹218.50 on Wednesday.
Initially, the REL management supported the open offer but later opposed it, citing undervaluation.
