Religare Enterprises shares jump 4% as Burman’s open offer bid gets counterbid from U.S. investor

Shares of Religare Enterprises surged over 4% in opening trade on Monday, in an otherwise weak broader market, after it received a counterbid from a U.S.-based investor, Digvijay Gaekwad, in response to the Burman family's open offer for the company. The stock snapped six sessions losing streak today as sentiment was lifted after Gaekwad proposed open offer price at ₹275 apiece, 17% higher than the Burman family of the Dabur group’s bid of ₹235 per share and 24% higher than the 60-day volume-weighted average price.

Ending six session losses, Religare Enterprises shares opened 4.2% higher at ₹259.95 against the previous closing price of ₹249.35 on the BSE. However, the stock soon lost momentum and dropped as much as 4.8% from opening high level to touch a low of ₹247.50. The stock has lost nearly 10% in the past six trading sessions.

At the time of reporting, Religare shares were trading flat at ₹249.3 on the BSE, with a market capitalisation of ₹8,242 crore. The counter touched its 52-week high of ₹319.90 on December 17, 2024, and a 52-week low of ₹201 on June 4, 2024.

In the last one year, Religare Enterprises shares have given 13% returns to its shareholders, while it lost nearly 2% in six months, and nearly 11% in a month. The smallcap stock has fallen nearly 9% so far in January 2025.

Amid ongoing takeover battle of Religare Enterprises Ltd (REL) between the Burmans and the existing management led by chairperson Rashmi Saluja, a Florida-based Indian-origin hotelier, Digvijay Laxhamsinh Gaekwad a.k.a Danny Gaekwad on Friday proposed an open offer for a 26% stake in Religare at ₹275 per share. The counter bid came on Friday evening, just two days before the open offer of ₹235 per share made by the Burman family opens on Monday. 

The latest open offer proposes to acquire up to 9,00,42,541 fully paid-up equity shares of the face value of ₹10 each, representing 26% of the Expanded Voting Share Capital of Religare Enterprises from the public shareholders of Religare by M.B. Finmart, Puran Associates, VIC Enterprises, and Milky Investment & Trading.

Currently, the Burman family entities own 25% stake in Religare Enterprises and is the largest shareholder of the company. With the open offer, their stake in REL would increase to 53.94%, while Gaekwad proposes to pick up to 55% stake in the company.

For the Burmans, Gaekwad’s move represents a significant challenge. They have accused Gaekwad of failing to comply with markets regulator Securities and Exchange Borad of India’s (SEBI) takeover regulations and claimed his proposal lacks both substance and legitimacy. In a statement issued late in the evening today, the Burmans dismissed Gaekwad’s attempt to secure SEBI’s permission to launch a competing offer. “Gaekwad had a 15-day window, as stipulated under SEBI’s regulations, to make a competing offer after our public announcement on October 4, 2023. He did not act within this period,” a Burman family spokesperson asserted.

Last month, the Reserve Bank of India approved the open offer of the Burman family to acquire an additional 26% stake in REL.

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