Religare Enterprises on Tuesday announced that the Reserve Bank of India (RBI) has allowed the Burman family to increase its stake in the company. In a regulatory filing, the company said that both the Burman family and Religare Group need to consolidate NBFCs in a resulting structure by March 31, 2026. In this regard, the RBI circular said, “The acquirers are advised to submit a concrete and specific consolidation plan, with specific timelines, duly supported by Board Resolutions from each of the NBFCs within the groups, within 90 days from the date of this communication.”
Burman family plans to raise its stake in Religare Enterprises from 25 per cent to 51 per cent via an open offer.
Besides submission of a consolidation plan for the NBFCs, the approval comes with specific conditions, including
– immediate reporting of any adverse regulatory or legal actions affecting the acquirers or ultimate beneficial owners (UBOs);
– a 30-day public notice before completing the stake acquisition;
– information to RBI about the date on which the acquirers have acquired 26 per cent or more of the paid-up share capital of the NBFC.
The RBI letter also stated, “If the acquirers fail to acquire the proposed shareholding within a period of one year from the date of this letter, this approval shall stand cancelled. After execution of the proposed change in shareholding, if the shareholding of the acquirers in the NBFC falls below 26 per cent, prior approval of RBI will be required to increase the shareholding of the acquirers in the NBFC to 26 per cent or more.”
The Burman family began acquiring stakes in 2018 and have faced opposition from Religare’s management and regulatory scrutiny.
Meanwhile, Religare Enterprises’ shares went up by 3.49 per cent during intraday trading on December 10 and surged 15.18 per cent on a 1 month basis. Dabur shares were up 0.07 per cent in intra-day deals.