Religare Shares Surge 18.9% After Burman Family Takes Control

New Delhi, Feb 21 (PTI) Shares of Religare Enterprises on Friday jumped 18.9 per cent after the Burman family acquired a controlling stake and designated as promoters following closure of the open offer.

After the open offer, the shareholding of Burman family increased to 25.16 per cent, making it the largest shareholder and promoter of the company.

Shares of Religare Enterprises closed at Rs 265.30, an increase of 18.97 per cent on the BSE.

"We are pleased to announce that we have acquired control of Religare Enterprises Ltd (REL) and been designated as its promoters. We are grateful to our regulators, shareholders and other stakeholders for their trust and confidence," a Burman Group spokesperson said.

The immediate priority is to instil stability, strengthen governance, and drive sustainable growth at the company, the spokesperson said, adding, governance, trust, and integrity will remain at the core of our vision as we steer REL towards a future defined by resilience and stakeholder value maximization.

The Burman Group will work with REL's leadership and board to reinforce its strategic direction and enhance long-term value creation, the spokesperson said.

Burmans, through four entities -- Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company -- collectively owned 21.10 per cent stake in REL prior to open offer.

The Burman family -- a promoter of Dabur India and other entities such as Eveready Industries -- through its entities, in September 2023 announced a Rs 2,116-crore open offer to REL shareholders to acquire up to 26 per cent stake in the company.

Subsequently, four entities in January 2024 bought a 3.6 per cent stake in diversified financial services group Religare Enterprises for Rs 277 crore through open market transactions.

"We have always invested in businesses with strong fundamentals and high growth potential, and we will apply the same disciplined approach to REL with the highest levels of governance, this was the intent with which we launched our open offer for control and we remain committed to that,” the spokesperson added.

Motilal Oswal Focussed Fund is the second biggest stakeholder in Religare with a 7.15 per cent stake.