I trust the regulators will do their job and ensure value for stakeholders in Religare: Danny Gaekwad

Digvijay Laxmansinh Gaekwad, also popularly known as Danny Gaekwad back in Florida, opens up about his journey from India to the US, where he has built a successful career as a serial entrepreneur with interests across multiple sectors. From founding a bank in Ocala, Florida, to exploring a strategic bid for Religare in the Indian financial sector, Gaekwad shares his philosophy on business, his connection to India, and his vision for value creation. At 65, with decades of experience under his belt, he remains as ambitious as ever. Edited excerpts:

Q: You migrated to the US in the 1980s and settled down in Florida. Could you tell me a bit more about that?

Let me put it this way: India is where my heart is but it’s in the US where I earn my bread! I’ve come across various profiles written about me, but some of the details are inaccurate. For instance, people often pull information from my university profiles, while some refer to be me as a hotelier, which is grossly incorrect. I’m a serial entrepreneur with interests across sectors such as retail, real estate, hospitality, IT and financial services. Last year, I founded a bank in Ocala called Gala Bank, which is now fully operational. Additionally, I’m actively involved in developing a Real Estate Investment Trust (REIT), the National Growth REIT.

Besides my professional work, I devote about 50% of my time to politics. For over 30 years, I’ve been involved with the Republican Party because I firmly believe that strong leadership is essential for a nation’s prosperity. Good leaders create good governance, which, in turn, creates a better future for the citizens of a country. I’ve worked closely with 18 Congressmen, senators, and governors across the country. These initiatives, under the aegis of Indian American Business Titans, aim to connect like-minded individuals and promote meaningful conversations.

Q: You’ve spent years focussing on the US, so why the sudden interest in India, especially entering a contentious race for Religare in the NBFC space?

Over the past 10–12 years, I’ve been closely observing India’s economic growth, particularly since Narendra Modi became Prime Minister. His efforts to engage with the Indian diaspora in the U.S. and encourage investments back home have been inspiring. He speaks highly of India’s potential, and I see this as an opportunity for growth.

Religare, specifically, presents significant hidden value. I’ve analysed the company thoroughly and identified its potential for transformation. My plan is to acquire a 53% stake, beginning with an initial tranche of 26%. It’s a strategic move, and while there’s always a risk in such ventures—whether we win or lose—the opportunity is worth pursuing.

Throughout my career, I’ve specialised in identifying undervalued assets—whether in real estate, IT, or other sectors—and turning them into high-value investments. That’s how I’ve built my wealth over the years. For example, in the US, single-family home rentals have been a growing trend for the past seven years. After conducting thorough research, I started building homes in Florida two years ago.

In addition to my real estate ventures, I’ve established a Real Estate Investment Trust (REIT) called National Growth REIT (NGIT). While REITs are highly mature in the U.S., with over 10,000 established entities, India’s REIT market is still in its infancy. I see a significant opportunity there to bring structured, high-value investment vehicles to the market.

My interest in Religare aligns with my financial philosophy. This isn’t about personal profit but creating value for stakeholders. I’ve written to the regulatory bodies, the Sebi and RBI, to ensure everything is done transparently and fairly. Ultimately, the beneficiaries of such efforts will be the stockholders, not just the investors.

At 65, I may not be young, but I bring decades of experience to the table. I’m confident this is a worthwhile venture, both for me and for the people involved.

Right from Prime Minister Narendra Modi to Finance Minister Nirmala Sitharaman and other cabinet ministers, there has been a consistent call for expats to invest back in India. We saw the value and responded to that call. What’s wrong with that?

Q: Why Religare among all the companies?

In the financial sector, we’ve analysed several companies over the years, but many were overvalued and didn’t align with our investment philosophy. Me and my partner— [Himanshu] Patel, who has been instrumental in building a portfolio of banks worth $3 billion—specialise in identifying undervalued opportunities. Our approach has always been to “buy low, invest and elevate”.

Religare stands out because it is significantly undervalued compared to its potential. We’ve been monitoring the company closely and have identified opportunities to double or even triple its value with the right strategy and management.

We focus on conducting our own due diligence to ensure that our decisions are based on solid financial analysis rather than market speculation. While we’re aware there may be competing bidders, their motives or strategies don’t concern us. Our focus remains on unlocking value and transforming the company for the benefit of its stakeholders. We’re confident Religare has the potential to be a highly rewarding investment.

Q: Have you had a chance to meet the current management or speak with chairperson Rashmi Saluja to better understand her vision and strategy? As an entrepreneur, you know that taking risks isn’t gambling—it’s about taking calculated risks.

Absolutely, this isn’t gambling — it’s a calculated bet, grounded in data and a deep understanding of the market. While I haven’t yet had detailed conversations with the current management or Saluja, we’ve been closely observing their leadership and the transformation they’ve initiated within Religare. A company like this isn’t built overnight or by chance—it’s the result of years of effort and strategic vision.

I haven’t had the chance to meet her yet, but I would love to. From what I understand, she must have the company’s best interests at heart to have taken on the role of chairwoman and driven its growth.

As a chairman myself, I understand the responsibility that comes with such a position. My goal is always to be recognised as a chairman who adds value and ensures the success of the company and its stakeholders. I wouldn’t want to let the company or its people down—it’s about creating growth and opportunities for everyone involved.

I’m confident that if my vision aligns with theirs, they will support me. After all, I plan to bring substantial value to the company. Stakeholders, including the management, stand to benefit significantly as the company grows and generates more value for everyone.

As an entrepreneur, I’ve analysed countless opportunities—sometimes 50 or even 100 deals before identifying the right one. Religare stood out due to its immense potential for value unlocking. Let me turn the question around: why not Religare? If there’s something wrong, tell me. From my perspective, the company offers significant opportunities. The insurance industry is growing rapidly, with Religare positioned to capitalise on this momentum. With robust demand for affordable housing, NBFCs such as Religare play a critical role in providing loans and supporting this backbone of India’s economy. Broking and Financial Services are essential in India’s evolving financial ecosystem, with no immediate geopolitical risks affecting them.

So, the timing is perfect, and the potential is substantial. My decision is based on these factors and a clear path for transformation. From what I see, the upside far outweighs the risks.

Q: Your communication to Sebi aligns with the management’s concern over clarity regarding the Burmans consolidating their NBFC business. It gave the impression that you had conversations with the current management to understand the issues and gauge whether the independent directors and Saluja would support your bid.

Like I said before, I don’t know the directors nor the chairperson. But they should support it because I’m bringing value to the table. I’m not their enemy—I’m their friend in this process. I’m offering a 17% premium, which means I’ve already increased the company’s value in a single day. Surely, that kind of value creation must give them peace of mind, knowing that I’m here to enhance the company’s growth and benefit all stakeholders.

Q: Considering the current tussle for control, why would you, as an entrepreneur, want to venture into something where you’d have to fight it out, especially when there are other opportunities available?

I wouldn’t characterise this as a fight. In any competitive scenario, there are different parties with varying valuations and strategies. Someone might see an opportunity at a lower price, while another sees greater potential and is willing to offer more. Calling it a “fight” is a misconception.

Negotiation and competition are inherent in any market, whether you're buying a company or negotiating with a vegetable vendor. Indians, by nature, have a bargaining mindset.

In this case, I’ve put forward an offer that reflects what I believe to be the right value for Religare.

Q: Let’s not refer to it as a fight; rather, let’s call it a counteroffer. What are your thoughts on that?

Absolutely. A counteroffer is a natural part of any negotiation. Whether you’re buying a flat in Worli or investing in a company, counteroffers are how the process unfolds. Business is a beautiful venture, built on discussions, negotiations, and aligning on value.

I come from a strong background in finance and real estate, with ongoing projects like a new REIT. Even though I’ve been in the US for 30–40 years, there’s always a connection to India. Every Indian feels it. If the circumstances and opportunities are right, investing in our home country becomes a natural choice.

Indians abroad send back $70 billion annually—more than India’s defence budget. It shows how much we care about contributing to our families, communities, and the country’s growth. I do hope that Modi and his administration continue to create better opportunities and policies for NRIs, encouraging us to invest without squeezing us out.

As for this particular deal, if it doesn’t happen, it’s not the end of the road.

Q: Have you had any experience or exposure to Indian stocks before? When did you start looking at Indian markets or opportunities?

I’ve been observing Indian markets my entire life. However, being heavily engaged in making money, working in politics, and contributing to community initiatives here in the US, I didn’t always have the bandwidth to act on opportunities. When the right ones come along, though, I evaluate them seriously.

Right now, my partner is in India working on something significant. We’ve also been building projects in the U.S., including a new $150 million resort in the Virgin Islands. My partner, Patel, has an incredible track record in banking. Over the past eight years, he’s built a $3 billion portfolio of small banks across Florida, Georgia, and Alabama.

Our strategy has always been to identify smaller banks valued at $200–$300 million, infuse additional funds, and grow them into much larger entities. It’s a long-term, organic process, but it’s been highly effective.

Q: Is this a joint bid with your partner for Religare?

I’m not going to disclose that. Since this conversation might end up in the public domain, I prefer to keep those details private. I’m sharing this with you as a friend, but as a reporter, I can’t comment further on this matter.

Q: As a journalist, it’s only fair to ask—what are your plans?

That’s a fair question, and I’ll answer it as openly as I can. Just as leaders such as Adani and Ambani work with joint venture partners, we too can consider public or private partnerships. It’s an open market, and opportunities are available for anyone with the vision and ability to create value.

In this case, we’ll bring in industry and domain experts to guide and grow the business. Their expertise will help unlock the full potential of the company. From my perspective, the business holds immense value—otherwise, I wouldn’t be investing my time, resources, and effort into it. A businessman lives by one simple philosophy: make money, don’t lose. It’s straightforward and doesn’t need much articulation. If there’s a money-making opportunity and I see value in it, I take it.

And as they say, if you want to walk a thousand miles, you have to take the first step. There’s always a first, a second, and a third; life is a progression.

You’re never late in life. When I came to America in 1986–87, people told me, “Danny, you’ve missed the opportunity. The market has crashed, and interest rates are 21%.” But let me tell you the truth—no one ever misses anything if they keep their focus.

Think about it: how many billionaires were in India in the 1990s? Look at the 2000s, 2010, 2020s. Opportunities are always there. So, I don’t believe in the idea of missed opportunities.

I also believe that if God is on your side, no battle is too difficult to win.

Q: Are you waiting to hear from Sebi?

Yes, let’s see what Sebi decides. The Prime Minister himself encourages people to invest in India, and this initiative is essentially a form of foreign direct investment.

Q: Will you be reaching out to the Burmans to see if this can be resolved amicably?

I don’t know the Burmans personally, but in business, it’s not always necessary to know someone beforehand. What matters are the principles of business and whether they align with my strategy. If those align, relationships can follow naturally. After all, if I’m going to create value and generate returns, wouldn’t that foster collaboration rather than conflict?

I bring a fresh perspective shaped by my experiences in the US, while the local management has invaluable Indian market expertise. If we combine these into a hybrid model, leveraging local intelligence and global insights, it can lead to great success.

I’m no rookie who just woke up and decided to enter the financial world. I’ve sat on the board of one of the world’s largest mortgage companies—bigger than the mortgage division of Bank of America. But I don’t seek publicity or boast about my credentials. Business for me is about wisdom, strategy, and the opportunities that come my way.

If the opportunity isn’t right, I’ll walk away. But in this case, I believe the valuation is incorrect, which is why I offered a 17% premium. This is in line with how businesses are valued in the U.S. and reflects the potential I see in this venture.

Q: Would you consider buying out their stake entirely?

Why not? If they are willing, I am ready to buy their stake. There’s no need for conflict. In a fight, nobody truly wins, which is why I’ve avoided using the term “fight” from the beginning. This isn’t about winning or losing—it’s about engaging in a meaningful negotiation. My approach is as a strategic investor who sees an opportunity to add value and generate returns.

If the company’s turnaround progresses as envisioned, the value created will be tremendous. I have the commercial sense and experience to recognize that potential.

As a serial entrepreneur, creating value through strategic acquisitions and turnarounds has always been my forte. Let me give you an example: in 2008 and 2013, when the market in Florida was at its lowest, I purchased land for $4.5–5 million. At the time, people told me I was making a huge mistake, even calling me “the number one idiot”. Today, that land is valued at $85 million.

The key is vision and conviction. If I see value in this opportunity, I’m more than willing to step in and take the necessary actions to create that value.

Q: But the Burmans too are one of the oldest business families in India with diversified interests.

A: I have nothing but respect for the Burmans. Respect is crucial, especially for a family that has built such a significant legacy over the years. Disrespecting someone, especially a legacy like theirs, is a sin in my book. Beyond this, I don’t claim to know much about them personally, but I respect their achievements and contributions. That said, business is about perspective. If I value something at ₹2 and they value it at ₹1.5, it’s simply a difference in viewpoint.

Q: What is your sense of how the regulatory authorities will decide in this case?

I am confident that the regulatory authorities will focus on their primary responsibility: protecting stakeholder rights and ensuring that investors, who are also citizens of India, receive fair value.

Q: Would you be open to further increasing the offer price?

How can I know that now, and why should I reveal my plans to you? Perhaps you should ask the Burmans what’s on their mind.

Q:  But I’m asking you the question

It all depends on the stance the regulatory agencies take. They will verify my antecedents—whether everything is in order, whether my offer is legitimate. That’s their job, and I trust the process. Once that is clear, decisions can be made accordingly.