The Reserve Bank of India (RBI) has allowed the Burmans, the promoters of Dabur, to increase their stake in Religare Enterprises.
The central bank approved an open offer of the Burman family to buy an additional 26 per cent stake in the non-banking finance firm. It, however, directed the current board or management structure of Religare Enterprises (REL) should remain.
As of September 30, 2024, Burmans, through its four entities, collectively own a 25.12 per cent stake in REL.
In a letter to the chairman of REL, the RBI said “the acquirers are advised to consolidate the NBFCs in the resulting structure/ group (both Burman and Religare group) at the earliest and not later than March 31, 2026’’. The letter’s copy was shared by REL to stock exchanges on Tuesday.
The banking regulator added it has granted its approval ‘for the proposed increase in shareholding of existing shareholders’ — four Burman family entities Puran Associates, VIC Enterprises, M B Finmart and Milky Investment & Trading Company — in Religare Enterprises Ltd.
“The request for change of management/appointment of four proposed directors — Abhay Agarwal, Arjun Lamba, Ramanathan Gurumurthy and Suresh Mahalingam does not have our approval at this stage,” it added.
The RBI, further, “advised” REL to submit the names of the proposed directors, along with the board resolution, after ensuring that they are “fit and proper”.
The Burman family in September last year announced a ₹2,116-crore open offer to REL shareholders to acquire up to a 26 per cent stake in the company.
However, it was contested by REL independent directors, who alleged fraud by the Burman family entities.
The RBI has advised Burmans “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”.
RBI further said it has to be informed about the date on which the Burmans acquired 26 per cent or more of the paid-up share capital of the NBFC.
