The Burmans, owners of Dabur India, can only be passive shareholders in Religare Enterprises’ (REL) management as they would need “explicit consent” from the board to assume control, according to executive chairperson Rashmi Saluja.
“The Burmans, along with any other investor, showing interest in our company were drawn by the prospect of substantial wealth generation available at a favourable price. However, their involvement can only extend to being passive shareholders, not active participants, in the company’s management,” she told Ventura Securities in an interview.
“During challenging times, there was a noticeable absence of initiative from any party to assume responsibility. Now, as we’ve navigated through these challenges, it’s not feasible for anyone to simply step in and assume control without the explicit consent of the REL’s board,” she said.
Both the Sebi and RBI have communicated this to the Burmans, particularly when their attempt to gain a more “significant influence” over REL was halted, with the banking regulator refusing a request to acquire control or enact a management change. The RBI clarified that such applications for permission must be made by the target company itself, Saluja added.
On initial public offerings (IPOs) of group companies, she said all the three business segments – Religare Finvest, Religare Housing Development Finance Corp and Religare Broking – are emerging from a difficult phase. They require time to stabilise their operations, and IPOs would be premature except for Care Health, which is “performing well”.