Religare Enterprises’s shares for ₹2,116 crore – a 21.91% premium over the day’s share price. The Religare team, led by chairman Rashmi Saluja, however, resisted the Burman family's offer. Since then, there has been a flurry of accusations, casting a shadow over the future of the financial services firm.
So why are the promoters of FMCG giant Dabur resolved to take over Religare despite this ugly public spat? What hidden value do they see in the financial company? Why is Religare resisting the stake sale? The rivalry between the two parties intensified in recent weeks amid a flurry of counter-allegations. The feud took a dramatic turn when an FIR was filed against members of the Burman family in connection with an alleged Mahadev betting app scam. The FIR, which involves charges of fraud and gambling, implicates 32 individuals, including the Burmans and the promoters of the betting app.
The Burmans have vehemently denied the allegations, maintaining that the allegations were a deliberate attempt to derail their takeover bid for Religare. Let us first understand the Burmans’ larger plan in this takeover bid. The Burman family had a collective net worth exceeding ₹77,000 crore in 2022, as per Forbes India’s estimates.
Over the last 20 years, the family has built a diverse investment portfolio focused on healthcare, financial services, hospitality, education, and media. It has invested over $500 million and built several joint ventures with Fortune 100 companies globally. The family’s investments in the finance and insurance sector include Aviva Life Insurance, Universal Sampo, and DMI Finance.Read more on livemint.com