₹235 per share for Religare is far lower than the company’s board anticipated, sparking a debate on whether they undervalued the company for their own benefit or whether REL’s leader Dr. Rashmi Saluja, who has been pivotal in turning around its fortunes, can take it to greater heights by preventing the Burmans from checking in. The Burmans are a co-promoter of Aviva Life Insurance, and own 19.9% of Universal Sompo General Insurance Co.
Ltd, 50% of brokerage firm Haitong Securities India Pvt. Ltd., 39% of Eveready Industries India Ltd, and 100% of M.B. Finmart, A.
V. B. Finance Pvt.
Ltd., Burmans Investments Pvt. Ltd, Burmans Finvest Pvt Ltd, apart from at least five dozen other firms. This in addition to their flagship company Dabur, the owner of brands such as Hajmola, Dabur Amla, Odomos and Odopic.
“The next big play is in the financial services space, where the Burmans want a stronghold," said a veteran investment banker who has known the Burmans and the Religare group closely over the past two-and-a-half decades. A February report by Mint said conglomerates such as Godrej, Adani and Reliance are enthused by the pace at which Indian consumers are devouring credit. The interest of these business houses in financial services suggest an aggressive push into the non-banking financial services market as they embark on their digital-lending journeys.
Under the current rules, it is impossible for a business house to set up a bank. The Burmans could certainly do with a fast-growing health insurance business. Since the pandemic, Indian health insurers have seen their business surge relative to other types of insurers.
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