RBI allows Burman family to increase stake in Religare Enterprises – CNBC TV18

Religare Enterprises on December 10 announced that the Reserve Bank of India (RBI) has allowed the Burman family to increase its stake in the company. Both the Burman family and Religare Group need to consolidate NBFCs in a resulting structure by March 31, 2026, according to the company’s statement.

However, Religare said that the request for the appointment of four proposed Directors has not received approval yet. According to the firm’s statement, RBI has said the NBFC has been advised to submit names of proposed directors with Board resolution, after ensuring that they are ‘fit and proper.’

“The acquirers are advised to submit a concrete and specific consolidation plan, with specific timelines, duly supported by Board Resolutions from each of the NBFCs within the groups, within 90 days from the date of this communication,” the firm said in the exchange filing.

The announcement comes months after Rashmi Saluja-led Religare had been engaged in a high-stakes contest with the Burman family of Dabur India, which has steadily increased its stake in the company over the past five years.

However, Religare was reluctant to finalise the necessary paperwork for the Burman family’s open offer to acquire up to 26% stake at ₹235 per share, which was made to shareholders in September 2023.

At present, the Burman family holds 25.18% of Religare Enterprises, and since it has crossed the 25% threshold it was eligible for an open offer. As the open offer proceeds and if successful, the Burman family will then have a controlling stake in Religare.

The proposed acquisition of Religare Enterprises by the Burman family has already been given the go-ahead by the Insurance Regulatory and Development Authority of India (IRDAI). However, the green signal from the markets regulator Securities and Exchange Board of India (SEBI) is awaited since the central bank’s nod was pending.

The company’s annual general meeting (AGM) on December 31 is key to track as voting for the reappointment of Dr. Rashmi Saluja as Executive Chairperson takes place that day.

Religare Enterprises shares traded 3.4% higher at ₹287.55 on NSE at 12:46 pm, shortly after the announcement.