Bengaluru: The Competition Commission of India on Tuesday gave its approval for the acquisition of a 5.27% stake in Religare Enterprises by entities controlled by the Burmese family, as well as a subsequent open offer to buy up to an additional 26% of the financial services company. .
The provisions have been approved under the Securities and Exchange Board of India Regulations, 2011, the competition watchdog said in a statement.
In September 2023, the Burmese family that owns consumer goods Dabur India signaled its intention to acquire a 5.27% stake in the financial services company for ₹407 crore, which would take their shareholding to over 26%, triggering an open offer.
The Burman family owns shares in Religare Enterprises through MB Finmart, Puran Associates, VIC Enterprises, and Milky Investment and Trading Co.—entities belonging to cousins Anand and Mohit Burman.
As the largest shareholder in Religare now, the family has grown its holding over five years since acquiring a 9.9% stake in April 2018.
In June 2021, it raised its stake to 14% and acquired an additional 7.5% in August 2023.
If the open offer is successful, the Burmese will own more than 53% stake in Religare.
The approval of the competition watchdog is only the first of many that the Burmese are demanding. They also require a nod from the Reserve Bank of India, as Religare Enterprises operates NBFC Religare Finvest Ltd. The units require the approval of the insurance regulator for Care Health Insurance and need a final nod from SEBI.
“The acquirers, which are controlled by the members of the Burma Family, are major non-deposit taking non-banking financial companies (NBFCs) engaged in the business of making investments in capital markets and providing secured and unsecured loans,” the CCI said. .
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Published: 23 Jan 2024, 23:00 IST
(tagsTo Translate)Dabur India