Religare Enterprises Limited (REL) made headlines as its stock opened 7.6% higher on 21st February 2025 on NSE after the Burman family secured a controlling stake, officially becoming the new promoters. This move wraps up an intense 18-month takeover battle and sets the stage for a fresh chapter in the company’s journey.
With a 25.16% stake now in their hands, the Burmans are gearing up to strengthen governance and drive long-term growth, sparking a positive sentiment among investors.
The Acquisition Details
The Burman family, known for owning Dabur India, increased their shareholding in REL to 25.16% through an open offer—this strategic move involved acquiring an additional 0.07% equity, solidifying their controlling interest in the company. The open offer, valued at ₹2,116 crore, was a decisive step in the family’s plan to steer REL towards a new direction. Fortune India
Following the completion of the open offer, the Burman family now holds 8.32 crore equity shares in Religare Enterprises Limited (REL), representing 25.16% of the total paid-up capital. This acquisition has officially recognized them as the company’s promoters. Source: LiveMint
Burman Family’s Stake in Religare Enterprises
The Burmans, through four entities—Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company—held a 20.15% stake in Religare Enterprises.
In September 2023, the Burman family, known for promoting Dabur India and other businesses like Eveready Industries, launched a ₹2,116 crore open offer to acquire up to 26% stake in Religare Enterprises from existing shareholders.
In January 2024, the Burmans further increased their stake by acquiring an additional 3.6% for ₹277 crore through open market transactions. The shares were purchased by three of their entities—Puran Associates, VIC Enterprises, and M B Finmart. Source: Moneycontrol
Market Reacts Positively
The stock market responded enthusiastically to this development. REL’s shares jumped by 7.6%, reflecting investor confidence in the Burman family’s leadership and their vision for the company’s future. This surge underscores the market’s optimism about the potential positive changes and growth prospects under the new promoters. LiveMint
Background of the Takeover Battle
The Burman family’s takeover of Religare Enterprises was an 18-month-long battle. During this time, they steadily increased their stake, cleared regulatory hurdles, and navigated market challenges. Their persistence has secured them a controlling stake, marking a key moment in REL’s history. LiveMint
Implications for the Financial Sector
This acquisition is more than a business move; it marks a shift in India’s financial sector. With their success at Dabur India, the Burman family brings valuable experience to Religare. Their leadership could strengthen business practices, set new industry standards, and encourage other conglomerates to enter the financial market, boosting competition and growth.
Investor Sentiment
REL’s stock rise shows investor confidence in the Burman family’s leadership. Analysts expect strategic changes, a focus on core strengths, and possible expansion into new financial services. This optimism comes from the Burmans’ success in building strong businesses and commitment to long-term growth.
Conclusion
The Burman family’s takeover of Religare Enterprises is a key milestone for the company and India’s financial sector. With experienced leadership, stakeholders look forward to new strategies that could reshape REL’s future and set new industry standards.
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FAQ
What happened with Religare Enterprises and the Burman family?
The Burman family, promoters of Dabur, has gained control of Religare Enterprises. They achieved this by acquiring a majority stake through an open offer. This move gives them significant influence over Religare’s operations and strategic direction.
How did the stock market react to this news?
The stock market reacted positively, with Religare Enterprises’ stock price gaining 7.6%. This suggests investors believe the Burman family’s involvement will bring positive changes and growth to the company.
What does this mean for Religare Enterprises going forward?
With the Burman family in control, Religare Enterprises could see shifts in its management, strategic focus, and business operations. The company might explore new opportunities, expand its services, or undergo restructuring to align with the Burman family’s vision.
Who is the Burman family?
The Burman family is a prominent business family in India, best known as the promoters of Dabur, a leading consumer goods company. They have a long history in the Indian market and are known for their successful ventures in various industries.
What is an open offer?
An open offer is a process that allows existing shareholders to sell their shares to a party seeking to acquire a controlling stake in a company.
In this case, the Burman family made an open offer to Religare Enterprises’ shareholders to acquire additional shares and gain control.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
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