Key investors question PIL that led to HC stay on Religare AGM

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Subscribe to enjoy similar stories. Mumbai: Several large investors of Religare Enterprises Ltd (REL) have criticized the public interest litigation (PIL) filed by an investor that led the Madhya Pradesh High Court to indefinitely stay the company's upcoming annual general meeting. The investors disputed the premise of the writ petition filed by the individual named Vijayant Mishra, who argued that a takeover of Religare by the Burman family will concentrate the ownership of the company in the hands of a few, which is against the interests of minority shareholders.

Mint spoke with multiple investors, who collectively control about a tenth of Religare's total share capital. “This is a mockery of shareholders’ rights and shareholders’ democracy," said Umeshkumar Mehta, chief investment officer, Samco Mutual Fund. “Holding of the AGM has got nothing to do with RBI approval or open offer.

AGM is an independent business matter," he said, adding that he was speaking on behalf of Samco fund house and not its promoters. Samco Special Opportunities Funds holds a 1.37% stake in Religare. Separately, Samco’s promoter Modi family owns an 8.19% stake in the company through two holding companies—Chandrakanta and Quick Trading and Investment Advisors LLP.

“Today also the shareholding is concentrated with the Burman family. If they make an open offer, minority investors can always say no to selling their shares. If such arguments are made then no takeovers can happen in India," said a senior executive at one of the large institutional investors of Religare, asking not to be named as they are not allowed to speak to the media on matters related to any specific security.