The Supreme Court has thrown a curveball into the fierce takeover battle for Religare Enterprises Limited (REL), ordering US-based investor Danny Gaekwad to deposit ₹600 crore by February 12 to prove his credibility. As a result, the competing offer from Burman Family Holdings, the promoters of Dabur, remains open until the same date.
The court also directed the Securities and Exchange Board of India (SEBI) to review Gaekwad’s takeover applications, a move that could reshape the trajectory of the ongoing corporate tussle. A bench led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar made it clear that if Gaekwad fails to deposit the amount, the order will be nullified automatically.
This ruling has thrown a wrench into the plans of Burman Family Holdings, which was set to close its open offer on February 7. The family had initiated the takeover by increasing its stake in REL, triggering a mandatory open offer to acquire up to 26% of the company at ₹235 per share—a move designed to secure a controlling majority.
However, Gaekwad disrupted the process with a counteroffer, proposing to acquire 55% of REL at ₹275 per share, significantly higher than the Burmans’ bid. SEBI had initially rejected Gaekwad’s proposal on the grounds that it was submitted past the deadline, but he has challenged this decision in court. While the Burmans insist that the cutoff date for the open offer was September 2023, Gaekwad argues that regulatory approval from the Reserve Bank of India (RBI) only came in December 2024, making his January 2025 offer valid.
Investor concerns have now been amplified by a petition filed by Sapna Govind Rao, who argues that the Burman Family’s offer undervalues REL shares. She contends that shareholders unaware of Gaekwad’s higher bid could suffer significant financial losses if they sell at the lower price.
Rao’s plea also raises questions about the fairness of the acquisition process, urging that both offers be allowed to run parallel to ensure competitive price discovery. Her petition underscores the urgency, as REL’s annual general meeting (AGM) was announced before Gaekwad’s bid was made public, potentially influencing shareholder decisions.
The legal tug-of-war has intensified after the Delhi High Court previously declined to halt REL’s AGM. While a single-judge bench dismissed Rao’s request, the Supreme Court’s latest ruling has shifted the battlefield once again.
With the February 12 deadline looming, the fate of REL remains uncertain. The coming days will determine whether Gaekwad follows through with his financial commitment or if the Burman Family tightens its grip on the financial services firm.
