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Dabur owners' acquisition of additional 5.27% stake in Religare gets CCI nod
As of December 31, 2023, the Burman family was already the single-largest shareholder in Religare, with a 21.17% stake.
The Competition Commission of India (CCI) has okayed the acquisition of an additional 5.27% stake by entities controlled by the Burman family, which owns FMCG major Dabur India, in Religare Enterprises Limited (REL), the anti-trust regulator said on Tuesday.
“The stake has been acquired in Religare by Puran Associates Private Limited, MB Finmart Private Limited, VIC Enterprises Private Limited, and Milky Investment and Trading Company. The four companies are controlled by members of the Burman family,” a CCI press release said.
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The proposed combination envisages the acquisition of 5.27% of Religare's total equity share capital, the release stated further, adding that the acquisition will be accomplished through ‘open market purchases,’ and an open offer for up to ‘26% of the total expanded voting share capital.’
As of December 31, 2023, the Burmans' stake in Religare stood at 21.17%, making them the single-largest shareholder in that company. In September that year, the Dabur owners made this offer to expand their voting share capital to 26%, by acquiring the additional stake for ₹2116 crore, at ₹235 per share.
The proposal, however, ran into trouble as the Mumbai Police registered a first information report (FIR) against 32 people, including Dabur chairperson Mohit Burman and Gaurav Burman, its director, in connection with the Mahadev app betting case. Calling the allegations ‘false and baseless,’ the Burmans said that the FIR was an ‘arm-twisting bid’ to ‘stop’ its Religare plan.
