The Competition Commission of India (CCI) has given the green light to the Burman family, the promoters of Dabur India, to acquire a majority stake in Religare Enterprises, a financial services company. The deal involves open market purchases and an open offer for up to 53.94% of the total share capital of Religare.
Religare Enterprises is a diversified financial services firm that operates in segments such as general insurance, SME loans, housing finance, and retail broking. The company has been facing financial and governance challenges in recent years, and has been looking for strategic investors to revive its business.
The Burman family, through its four entities – Puran Associates, MB Finmart, VIC Enterprises and Milky Investment & Trading Company – currently holds 21.25% of Religare. The CCI approval will enable them to increase their stake to up to 53.94%, subject to the acceptance of the public shareholders in the open offer process.
The Burman family has interests in various sectors such as home healthcare, restaurants, insurance, consumer goods, FMCG, etc. The family has said that it intends to support Religare’s growth and turnaround plans, and leverage its expertise and network to enhance the value proposition for all stakeholders.
The CCI approval is subject to certain conditions, such as maintaining the current level of shareholding in Religare Health Insurance Company Limited, and not acquiring any additional shares or voting rights in any of Religare’s subsidiaries without prior approval of the CCI.