SEBI rejects Digvijay Gaekwad's plea for competing open offer in Religare deal

SEBI rejects Gaekwad's plea for competing open offer, solidifying Burman Group's acquisition bid for Religare Enterprises.

Capital markets regulator Securities and Exchange Board of India (SEBI) on Friday (February 14, 2025) rejected Digvijay Laxhamsinh Gaekwad’s plea seeking an exemption to make a competing open offer for a majority stake in Religare Enterprises.

With this ruling, the Burman Group’s open offer process remains on track, solidifying their acquisition bid for Religare Enterprises Ltd (REL).

The market regulator in an order stated that the price offered by Mr. Gaekwad was ₹275 per share in the proposed open offer which was ₹40 higher than the Burman Group’s offer of ₹235 per share.

“The applicant (Danny Gaekwad Developments & Investments, Florida) has failed to demonstrate his ability to meet the financial obligation for making the competing open offer,” it stated.

SEBI also observed that the “applicant has failed to deposit ₹600 crore, as directed by the Supreme Court of India vide its order dated February 7, 2025, read with order dated February 12, 2025, which would have shown the applicant’s commitment towards making the competing open offer”.

In the absence of adequate proof of financial resources required for making the competing open offer, the application does not appear to be bonafide. It seems frivolous and aimed solely at hindering the open offer process, the order passed by SEBI’s whole-time member Ashwani Bhatia said.

“I .... dispose of the application dated February 1, 2025, filed by the applicant,” Ms. Bhatia said in the order.