Burman's Bid for Religare Stakes Faces Hurdles Amid Insider Trading Allegations

The Burman family's open offer of Rs 2,116 crore to acquire an additional 26 percent stake in Religare Enterprises Ltd (REL) resulted in only a 0.07 percent response. Allegations of insider trading followed, leading to governance disputes and the ousting of REL's Executive Chairperson Rashmi Saluja.

The Burman family’s ambitious Rs 2,116 crore proposal to acquire a further 26 percent stake in Religare Enterprises Ltd (REL) met with lackluster participation, collecting only a 0.07 percent response from REL shareholders.

The offer from entities linked to the Burman group, including M B Finmart Pvt Ltd and Puran Associates, was launched on January 27 and concluded February 13. Shareholders responded tepidly, with the offered shares representing a fraction of the targeted 26 percent stake.

Complicating the acquisition, allegations of insider trading were raised against the then-REL chairperson, Rashmi Saluja, by the Burmans, escalating tensions with REL's independent directors, who accused the Burman entities of fraud. In response, Saluja was ousted from her director position by shareholders on February 7.