REL Share Sale: Rashmi Saluja Refutes Burman Family''s Allegations

New Delhi, May 28 (PTI) Refuting allegations by Burman family, Religare Enterprises Ltd (REL) Executive Chairperson Rashmi Saluja said the share sale by her was in accordance with procedure and approval of the board.

Earlier this month, Burman Family, who are locked in a pitched battle with Religare Enterprises for the acquisition of the financial services firm, made fresh complaints against Saluja about insider trading violations.

As per the disclosure on exchanges last month, Saluja sold 6.18 lakh shares on March 26, 6.70 lakh shares on March 27, and 7.21 lakh shares on March 28. Following the transaction, Saluja's holding in REL is reduced to 0.81 per cent from 1.23 per cent.

"What I have read in the newspaper it is all unsubstantiated. The proposal was approved by the board and Nomination and Remuneration Committee (NRC). The board and independent members approved the proposal as per the regulation. So there has been no violation of regulation at all," she said.

Burmans, who holds around 25 per cent of REL through four entities -- MB Finmart, Puran Associates, VIC Enterprises and Milky Investment and Trading Co -- announced an open offer on September 25, 2023, to acquire a 26 per cent stake from the public shareholders.

The Rs 2,116 crore open offer plan sparked a row between REL management and the Burmans, with both sides trading charges.

Last year, the Burmans complained to Sebi accusing Saluja of selling 1.29 million shares after a representative of the family informed her of their intention to make an open offer to acquire control of the company.

Talking about the performance of REL, she said that the company has been performing well and it is also ratified by rating agencies by improving rating.

The consolidated revenue is Rs 6,299 crore for FY24, up by 30 per cent as compared to the previous year while recorded Profit Before Tax of Rs 217 crore (before exceptional items) as compared to a loss of Rs 31 crore in FY23, she said.

Despite certain challenges, REL has stayed on course to grow steadily. All four businesses have reported another profitable year, she said.

During the fiscal, Care Health Insurance and Religare Broking Ltd have reported their best performance to date.

"We remain optimistic about the future of all the businesses and are confident in our ability to continue delivering value to all our stakeholders. Care Health Insurance posted an all-time high premium collection of Rs 7,022 crore in FY24.

"Our Securities Broking business registered a bumper year of growth with income amounting to Rs 368 crore for FY24, a jump of 29 per cent as compared to the previous year," she said.

While the Housing Finance business reported another profitable year, the SME lending arm, Religare Finvest Limited (RFL) has become debt-free and is ready to start the operations, she added.