Danny Gaekwad’s third push for Religare: Will Sebi blink?
Subscribe to enjoy similar stories. Ramping up his efforts to be allowed a shot at bidding for embattled conglomerate Religare Enterprises, India-born US investor Digvijay ‘Danny’ Gaekwad has sought a “special exemption" under the country’s takeover code from India’s markets regulator.
This comes after his initial counteroffer to the Burman’s family’s open offer for Religare—first submitted on 24 January and revised on 26 January—was returned by the Securities and Exchange Board of India (Sebi) last week. In Sebi’s view, Gaekwad’s offer did not conform to the regulator’s exemption application rules under the takeover code.
Gaekwad’s latest letter to Sebi seeking the special exemption, dated 1 February, was shared by Religare with the exchanges on Monday. Gaekwad’s attempts gain significance in light of Religare’s upcoming AGM on Friday, 7 February.
Three proxy advisory firms, who advise institutional investors on how to vote on shareholder resolutions put forth by investee companies, have recommended that investors reject Religare chair Rashmi Saluja’s reappointment as a director at the AGM. Also read | Takeover twist: Now, Rashmi Saluja sues Religare Enterprises In his third letter addressed to Sebi chairperson Madhabi Puri Buch, Gaekwad said that his firm had appointed brokerage Prabhudas Lilladher’s investment banking arm, PL Capital Markets, as the merchant banker for his proposed ₹5,000-crore buy of up to 55% of Religare.
“We hope that Sebi will evaluate the substantive aspects of our application favourably and condone the delay in making competing offer given the public interest involved…," said the letter. In the latest letter, Gaekwad said he could not file a competing offer application within the mandatory 15
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