US Investor vs. Burman Group: The Battle for Religare Enterprises

The Burman family is set to acquire a 26% stake in Religare Enterprises through an open offer, with US-based Danny Gaekwad proposing a higher competing bid. Despite Gaekwad's interest, Burmans remain confident, citing regulatory challenges with his offer. The ongoing clash involves accusations of insider trading and requests for SEBI intervention.

The Burman family's open offer to acquire a 26% stake in Religare Enterprises Ltd (REL) is facing a challenge from US-based Danny Gaekwad Developments & Investments, which has proposed a higher price for a similar stake. This move comes just before the open offer is set to begin.

SEBI, the financial market regulator, was approached by Gaekwad Developments with a request for permission to submit a competing offer. However, the Burman group claims no competing offer was formally made and is confident in the success of its open offer starting January 27.

The ongoing dispute includes allegations against the Burman family for potential insider trading violations, further complicating the acquisition process. Despite these hurdles, regulatory approvals have been obtained for the Burman offer, as reported by RBI last month.

(With inputs from agencies.)