SEBI Rejects Gaekwad's Bid Amid Burman Group's Acquisition Drive

SEBI rejected Digvijay Laxhamsinh Gaekwad's plea for exemption to make a competing open offer for Religare Enterprises, solidifying Burman Group's acquisition bid. The regulator cited that Gaekwad failed to provide financial proof for the offer, deeming the application frivolous and detrimental to the ongoing open offer process.

The capital markets regulator, SEBI, dismissed Digvijay Laxhamsinh Gaekwad's request to make a rival open offer for a majority stake in Religare Enterprises, stating it lacked financial legitimacy.

Gaekwad's proposed price was Rs 275 per share, Rs 40 higher than Burman Group's Rs 235 per share offer, yet SEBI found Gaekwad unable to meet the financial obligations outlined by the Supreme Court. In turn, Burman Group's acquisition remains secure.

SEBI noted Gaekwad failed to secure necessary approvals, casting doubt over the viability of his competing bid. Stakeholders, including Burman Group, reacted positively, concerned an extended delay could have adversely impacted the existing open offer process.