Religare upsets investors by delaying AGM
Sebi directs Religare’s board, Saluja to seek approvals for Burman open offer “We are very upset about it. It should not have been done. Accounts have been filed and submitted to the exchanges, so there is no valid reason for pushing the AGM," one of the investors said on condition of anonymity.
Religare told the exchanges on 22 August that it had filed for an extension of the AGM on 21 August, which the Registrar of Companies had granted. Religare did not respond to a request for comment on why the company had pushed its AGM. “The reason to push the AGM seems to be to avoid the vote," another investor said.
The current impasse at Religare stems from last 25 September when the Burman family signalled their intent to acquire a controlling stake in Religare Enterprises. The promoters of consumer goods company Dabur India Ltd have been accumulating shares through MB Finmart, Puran Associates, VIC Enterprises, and Milky Investment and Trading Co., entities belonging to cousins Anand and Mohit Burman. After acquiring a 9.9% stake in April 2018, they increased their holding to 14% in June 2021 and then acquired an additional 7.5% in August 2023.
In January this year, they raised their stake to 25.18%, which gives them veto rights on any special resolution introduced by the company. “Under Indian law, the postponement of an AGM may suggest underlying issues within the company, such as corporate governance disputes or strategic decisions that are yet to be finalized," said Ketan Mukhija, senior partner, Burgeon Law. “In this case, Religare is in the midst of a high-stakes boardroom battle involving its management and the Burman family, who are attempting to take control of the company through an open offer.
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