Religare Enterprises share price jumps almost 19% as Burman Group takes control of the firm; check latest updates

The Burman family has acquired a controlling stake in Religare Enterprises Limited (REL) after the completion of the open offer, and its shareholding post the acquisition stands at 83,201,819 equity shares, representing 25.16%.

At close, Religare shares settled at ₹265.30 apiece on BSE, soaring 18.97%. During the morning trade, the scrip was trading 6.1% higher at ₹236.60 apiece on BSE.

“As a result of the completion of the purchase of shares pursuant to the Open Offer to the Public Shareholders, as per the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, on February 17, 2025 in the Target Company by the Acquirers, we wish to intimate you that the Acquirers have acquired 231,025 Equity Shares, representing 0.07%, of the outstanding paid up Share Capital as at the date,” the company said in an exchange filing on Thursday, February 20.

"In addition, further to the completion of acquisition of shares by the acquirer under the open offer ("Open Offer"), the acquirers had already acquired 13,200,000 equity shares, by way of purchase orders executed on January 31, 2024, representing 3.99% of the outstanding paid-up share capital as at the date, which have been transferred from the escrow demat account to the respective acquirer account on February 18, 2025," it further added.

The Burmans had made an open offer for acquisition of up to nine crore equity shares representing 26% of REL's stake from public shareholders. The acquisition has been made through Burman family-owned entities M.B. Finmart Private Limited (MFPL), Puran Associates Private Limited (PAPL), VIC Enterprises Private Limited (VIC), and Milky Investment & Trading Company (MITC).

Burman's open offer of ₹2,116 crore for the acquisition of the additional 26% stake in REL has received a tepid response. As per the data of open offer, against 90,042,541 shares (26%), only 231,025 shares (0.07%) were tendered.

According to the exchanges, the open offer closed on February 13, and the date of payment of consideration was February 17, 2025.

Burmans, through four entities -- Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company -- collectively owned a 20.15% stake in REL.

Soon after the open offer bid, Burmans complained to capital market regulator Sebi for violation of insider trading rules by then chairperson Rashmi Saluja and appointment of a board of her choice.

However, it was contested by REL independent directors, who raised red flags alleging fraud and other breaches by Burman family entities and approached regulators, including markets regulator Sebi, the RBI, and the Insurance Regulatory and Development Authority.

Earlier this month, REL Executive Chairperson Saluja was ousted as director by the company's shareholders.

She ceased to be a non-independent director with effect from February 7, 2025.