Burmans get nod to acquire 31.27% additional stake in Religare

The Competition Commission of India has approved the acquisition of 31.27 per cent of additional stake in Religare Enterprises by four entities of Dabur India promoter Burman family, enabling them to become majority owners in the financial services firm.

The fair trade regulator allowed the four entities to acquire Religare's 5.27 per cent through stock market purchase and another 26 per cent through an open offer.

The four entities -- Puran Associates Pvt Ltd, M.B. Finmart Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment and Trading Company-- are controlled by the Burman family, CCI said in a release on Tuesday.

"The proposed combination envisages the acquisition of 5.27% of the total issued and outstanding equity share capital of Religare Enterprises Limited (Religare) through open market purchases, and an open offer for up to 26% of the Total Expanded Voting Share Capital of Religare... by Puran Associates Private Limited, M.B. Finmart Private Limited, and VIC Enterprises Private Limited, Milky Investment and Trading Company," the CCI release said.

Religare is engaged in the financial services business through its subsidiaries and operating entities.

The Burman family has investments across various sectors such as insurance and FMCG, among others.

As of December 2023, the Burman family's holding in Religare Enterprises stood at 21.17 per cent, according to the exchange data.

After acquisition of additional 31.27 per cent stakes through open offer as well as through purchase of shares in the open market, its ownership in Religare will surpass 52 per cent.