Mumbai: The Religare There is a tussle going on between its largest shareholders regarding the acquisition of Enterprises. Dabur’s barmanand company’s Management A new turning point came with the support of the Board of Directors Rashmi SalujaExecutive Chairman of the firm.
Shares of the company rose nearly 6% to Rs 230 after the board said there were no irregularities in Saluja’s compensation structure or the profits derived from ESOPs of both the company and its health insurance subsidiary, Care Health. . The Board attributed the profit to the ESOP. The company was brought about by the Saluja-led board.
“As a result of the significant growth across all businesses, the company’s market cap has grown from a low of $100 million in March 2018 to over a billion dollars,” the board said.
Dabur’s Burman, who holds over 26% stake, has made an open offer for an additional 26%, a move that Religare management initially supported but later deemed underpriced. Burman accused Saluja of resisting an open offer out of fear of losing control. Burman had made an open offer at Rs 235 on September 25, which was much lower than the closing price of Rs 256 that day. Since then, the tussle has had an impact on the share price.
Burman family member Mohit Burman accused Saluja of insider trading and said that the management was opposing the open offer due to management issues.
Religare is left with no identifiable promoter after former promoters Malvinder and Shivinder Singh were charged with fraud. Saluja, a doctor and a newcomer to the world of finance, had the support of some shareholders. After assuming charge, he signed a one-time deal with banks for his lending arm Religare Finvest.
Burman originally held about 14% stake and gradually increased his stake to more than 26%, triggering the open offer.
Earlier this month, proxy advisory firm InGovern had reported allegations at Religare Enterprises (REL) regarding remuneration, regulatory violations and non-disclosures. The firm said that in the last 3-4 years, Saluja received over Rs 480 crore in option valuations from REL and its subsidiary Care Health Insurance. The allegations include issuance of Care Health ESOPs to Saluja despite disapproval by IRDAI, lack of REL shareholder approval and non-disclosure in REL’s annual report.
Responding to allegations by Saluja about the timing of termination of its ESOPs, the company clarified that the sale, scheduled for September 21-22, 2023, was initiated several days before the meeting with Burman on September 20, 2023. Was part of the process. The shares were sold at the prevailing market price, and Saluja used the proceeds to reinvest in the ESOPs of the Religare group entity. Before the meeting, the company stressed on obtaining the requisite approvals for financing, pledge, revocation and sale. Rashmi Saluja refused to give information about the proposed open offer during the meeting.
With regard to Saluja receiving ESOPs of a subsidiary, Religare said that there was a share in the ESOPs of the health insurer for the employees of its parent, which was given to him as an employee/executive director and chairman of REL, and not in his capacity as non-executive chairman. Care of health insurance.
Shares of the company rose nearly 6% to Rs 230 after the board said there were no irregularities in Saluja’s compensation structure or the profits derived from ESOPs of both the company and its health insurance subsidiary, Care Health. . The Board attributed the profit to the ESOP. The company was brought about by the Saluja-led board.
“As a result of the significant growth across all businesses, the company’s market cap has grown from a low of $100 million in March 2018 to over a billion dollars,” the board said.
Dabur’s Burman, who holds over 26% stake, has made an open offer for an additional 26%, a move that Religare management initially supported but later deemed underpriced. Burman accused Saluja of resisting an open offer out of fear of losing control. Burman had made an open offer at Rs 235 on September 25, which was much lower than the closing price of Rs 256 that day. Since then, the tussle has had an impact on the share price.
Burman family member Mohit Burman accused Saluja of insider trading and said that the management was opposing the open offer due to management issues.
Religare is left with no identifiable promoter after former promoters Malvinder and Shivinder Singh were charged with fraud. Saluja, a doctor and a newcomer to the world of finance, had the support of some shareholders. After assuming charge, he signed a one-time deal with banks for his lending arm Religare Finvest.
Burman originally held about 14% stake and gradually increased his stake to more than 26%, triggering the open offer.
Earlier this month, proxy advisory firm InGovern had reported allegations at Religare Enterprises (REL) regarding remuneration, regulatory violations and non-disclosures. The firm said that in the last 3-4 years, Saluja received over Rs 480 crore in option valuations from REL and its subsidiary Care Health Insurance. The allegations include issuance of Care Health ESOPs to Saluja despite disapproval by IRDAI, lack of REL shareholder approval and non-disclosure in REL’s annual report.
Responding to allegations by Saluja about the timing of termination of its ESOPs, the company clarified that the sale, scheduled for September 21-22, 2023, was initiated several days before the meeting with Burman on September 20, 2023. Was part of the process. The shares were sold at the prevailing market price, and Saluja used the proceeds to reinvest in the ESOPs of the Religare group entity. Before the meeting, the company stressed on obtaining the requisite approvals for financing, pledge, revocation and sale. Rashmi Saluja refused to give information about the proposed open offer during the meeting.
With regard to Saluja receiving ESOPs of a subsidiary, Religare said that there was a share in the ESOPs of the health insurer for the employees of its parent, which was given to him as an employee/executive director and chairman of REL, and not in his capacity as non-executive chairman. Care of health insurance.
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