The Burman family, which holds a controlling stake in Dabur, on Monday, announced an open offer for a 26 per cent stake in diversified financial services group Religare Enterprises for up to Rs 2,116 crore ($255.03 million), according to a stock exchange filing.
The family said it aims to acquire up to 90,042,541 shares at Rs 235 each.
“The acquirers hereby make this offer to the public shareholders of the target company to acquire up to 90,042,541 equity shares, constituting 26 per cent of the expanded voting share capital, at a price of Rs 235 per offer share, totalling Rs 21,159,997,135 (assuming full acceptance), subject to the terms and conditions set out in this public announcement and in the detailed public statement and letter of offer that are proposed to be issued in accordance with Sebi regulations,” the filing stated.
In August, the family acquired a 7.5 per cent stake in Religare Enterprises for Rs 534 crore through open market transactions. Its total stake in the company then increased to 21 per cent. The three entities — Puran Associates, Vic Enterprises and MB Finmart — belonging to the Burman family acquired shares in Religare Enterprises.
According to block deal data available with BSE, Puran Associates, Vic Enterprises, and MB Finmart purchased a total of 2.45 crore shares, amounting to a 7.5 per cent stake in Religare Enterprises.
On Monday as well, the open offer was made through Puran Associates, Vic Enterprises, MB Finmart and Milky Investment and Trading Company, all part of the Burman Group.
In August, Mohit Burman, chairman of Dabur Ltd, told news agency PTI that the Burman family views itself as a long-term investor in Religare and sees the company as a unique financial services platform.
“We are long-term investors in Religare Enterprises. The family has invested in Religare for the past five years, and we felt this was the right time to increase our stake,” Mohit, a member of the Burman family, told PTI.
He further stated that the subsidiaries of Religare Enterprises are performing well, especially in the areas of health insurance and retail broking.
“We believe these businesses are on solid ground. With proper guidance, they should continue to prosper. We also see Religare as a unique financial services platform,” Mohit added.