Sibi rejects the US -based Danny Gaquad

The Securities and Stock Exchange Council in India (Sebi) rejected the competing open offer from Danny Gaekwad Developments & Investments to acquire 26 percent stake in Religare Enterprises Ltd (ReL). The organizer stated that the offer did not comply with the required regulations.

In connection with Rel on January 28, Seebi explained that “the messages provided by Digvijay Laxmansinh Gaekwad” were returned, because they were not eligible as a request to be exempted under the 11 SEBI regulations (SAST), 2011. Email message from January 25, 2025, which included A message from the entity of Gaekwad, Danny Gaekwad Developments & Investments, based in Florida.

Danny Gaekwad Developments & Investments has suggested that a 26 percent stake in Religare Enverprises at a price is higher than the price offered by the four entities controlled by the Burman family. Gaekwad, a globally recognized investor, presented 275 rupees per share-by 17 percent more than Bormans width of 235 rupees per share.

Burman’s open offer started to obtain an additional 26 percent share on January 27 after organizational approval. The offer covers up to 90,042,541 of the entire paid stock shares, representing 26 percent of the expanded capital of the vote. If it is approved, the Burman Family in ReL will rise to 53.94 percent.

Burman’s entities include participating in the open offer Private Ltd, Puran Associas Private Ltd, Vic Enterprises Private Ltd and Milky Investment & Trading Companyy. As of September 30, 2024, these entities combined 25.12 percent of the ReL.

In September 2023, the Burman family – the Dabor promoters and other companies such as EVEREDY Industries – announced through their entities, an open offer of 2,116 rupees to get up to 26 percent in ReL.

After the open offer, Burmans filed a complaint with Sebi about the presidential violations of the president and the appointments of the Board of Directors.

This has faced a challenge by the independent managers of Rel, who reported concerns about fraud and other alleged violations by the Burman family entities and informed the order of the organizers including Sebi and RBI and the organization and development in the field of insurance.

(With PTI inputs)