In a dramatic twist to the high-stakes Religare Enterprises Limited (REL) takeover battle, the Supreme Court has extended the deadline for US-based investor Danny Gaekwad to deposit ₹600 crore, granting him time until 2:00 PM on February 13.
The extension was granted after Gaekwad’s legal team argued that transferring funds had been delayed due to the lack of approval from the Reserve Bank of India (RBI). A Supreme Court bench, led by the Chief Justice of India, ruled that Gaekwad could bring the amount through an RBI-nominated bank account to meet the deposit requirement.
This extension marks the latest chapter in the contentious power struggle between Gaekwad and the Burman Family, the promoters of Dabur India, over control of REL. The Burmans, having initiated an open offer to increase their stake in REL, are now facing a serious challenge from Gaekwad, who has proposed a higher-priced competing bid.
The Battle for Religare: A High-Stakes Tug of War
The takeover dispute traces back to the Burman Family’s bid to solidify control over REL by acquiring an additional 26% stake at ₹235 per share. The move, in line with SEBI regulations, aimed at increasing their total shareholding in the financial services firm.
However, Gaekwad disrupted their plans by launching a counter-offer for a 55% stake at ₹275 per share, presenting a more lucrative deal for shareholders. SEBI, however, rejected Gaekwad’s bid as time-barred—a decision he has challenged before the Supreme Court. While REL and the Burmans argue that the open offer deadline expired in September 2023, Gaekwad contends that the actual deadline is January 2025, citing RBI approval only being granted in December 2024.
With Gaekwad now making a fresh application for SEBI’s consideration, the financial world is closely watching how the regulatory body responds.
Legal Battles Continue as Shareholders Await Clarity
The Supreme Court’s latest ruling came in response to a plea challenging a Delhi High Court decision that refused to stay the REL annual general meeting (AGM). The petitioner argued that the Burman Family’s takeover bid undervalued REL shares, while the Burmans defended the legitimacy of their offer.
As the legal fight intensifies, shareholders are left in limbo, awaiting SEBI’s final stance on Gaekwad’s competing bid. With the deadline for the ₹600 crore deposit looming, all eyes are now on whether Gaekwad can secure his place in the takeover race or if the Burman Family will emerge victorious in their bid to control REL.