Sebi Blocks Competing Open Offer Bid by Gaekwad for Religare Enterprises

Securities and Exchange Board of India (Sebi) denied Digvijay Laxhamsinh Gaekwad's plea to make a competing open offer for Religare Enterprises. Citing financial inadequacies and lack of regulatory approvals, Sebi favored the ongoing Burman Group's process. Gaekwad also failed to secure $600 crore as per Supreme Court directions.

The Securities and Exchange Board of India (Sebi) has rejected Digvijay Laxhamsinh Gaekwad's petition for an exemption to submit a competing open offer for the majority stake in Religare Enterprises.

This decision ensures that the Burman Group's open offer process remains uninterrupted, further solidifying their acquisition intentions for Religare Enterprises Ltd (REL). Sebi criticized Gaekwad for failing to provide evidence of financial resources, particularly not depositing Rs 600 crore as mandated by the Supreme Court.

Moreover, Gaekwad had not acquired the necessary regulatory permissions and was criticized for the ineffectiveness of his merchant banker, PL Capital Markets Pvt Ltd, in upholding due diligence. Allowing Gaekwad's offer would create unfair situations for those who have already tendered shares under the Burman Group's current offer.