The Competition Commission of India gave its approval for the acquisition of a 5.27% stake in Religare Enterprises by entities controlled by the Burman family, as well as a subsequent open offer to buy up to another 26% of the financial services firm.
The provisions have been approved under the Securities and Exchange Board of India Regulations, 2011, the competition watchdog said in a statement.
In September 2023, the Burman family, which owns consumer goods company Dabur India, signalled its intention to acquire a 5.27% stake in the financial services company for ₹407 crore, which would take their shareholding to over 26%, triggering an open offer.
The Burman family owns shares in Religare Enterprises through MB Finmart, Puran Associates, VIC Enterprises, and Milky Investment and Trading Co.—entities belonging to cousins Anand and Mohit Burman.
As the largest shareholder in Religare now, the family raised their holding over five years since acquiring a 9.9% stake in April 2018.
In June 2021, it had raised its stake to 14% and acquired an additional 7.5% in August 2023.
If the open offer succeeds, the Burmans will own over 53% stake in Religare.
The competition watchdog’s approval is only the first of the many that the Burmans require. They also require nod from the Reserve Bank of India, as Religare Enterprises operates NBFC Religare Finvest Ltd. The entities require the insurance regulator’s approval for Care Health Insurance and need a final nod from SEBI.
“The acquirers, who are controlled by the members of the Burman Family, are important non-deposit accepting non-banking financial companies (NBFCs) engaged in the business of making investments in capital markets and providing secured and unsecured loans,” the CCI said.
