Sebi Dismisses Gaekwad's Bid for REL Stake Over Financial Issues

Sebi rejected Digvijay Laxhamsinh Gaekwad's application for a competing open offer for Religare Enterprises Ltd, citing financial inadequacy. Gaekwad's proposed offer was Rs 275 per share, higher than the Burman Group's Rs 235, but lacked proof of financial capability. Concerns were raised about Gaekwad's merchant banker, PL Capital Markets Pvt Ltd.

The Securities and Exchange Board of India (Sebi) has dismissed an application by Digvijay Laxhamsinh Gaekwad, seeking exemption for a competing bid to acquire a majority stake in Religare Enterprises Ltd (REL).

Sebi stated that Gaekwad's proposed offer price of Rs 275 per share was higher than the Rs 235 offered by the Burman Group. However, the application was rejected due to Gaekwad's failure to demonstrate sufficient financial resources. He also did not deposit Rs 600 crore as mandated by the Supreme Court, questioning the sincerity of his bid.

Sebi criticized Gaekwad's merchant banker, PL Capital Markets Pvt Ltd, for inadequate due diligence regarding Gaekwad's financial adequacy. Meanwhile, Religare Enterprises announced the cessation of Rashmi Saluja's directorship following a shareholder vote.