Religare Enterprises’ Chief Compliance Officer, Dr Mallikarjun Goda, has tendered his resignation and been relieved of his duties with immediate effect, the company said in a statement.
The resignation comes at a time when top officials of the company are attempting to scuttle the company’s takeover by the Burman family.
Amid the infighting, a few investors filed a case in the Madhya Pradesh High Court against holding the AGM and the open offer by the Burman family.
Last week, the MP High Court disposed of the petition and paved the way for the AGM.
The open offer for Religare Enterprises was delayed due to a legal dispute, during which the company’s leadership, led by Chairperson Rashmi Saluja, raised concerns over the price and the Burman family’s credentials.
As per proxy advisory firm InGovern, the AGM is important in the context of Saluja’s tenure, as she is due for reappointment. As the only non-independent director, her position requires reappointment at each AGM, making the delay critical.
The open offer warrants an investment of ₹2,116 crore, with the offer price fixed at ₹235 per share. If the open offer succeeds, the Burman family’s stake in Religare Enterprises will exceed 50 per cent, leading to a transfer of management control to the promoters of Dabur.
The Burmans have already secured approvals from the Competition Commission of India, the Insurance Regulatory and Development Authority of India, stock exchanges, the RBI, and SEBI for the open offer.
“The recent and inexplicable change in the stance of some of the Independent Directors and the consequent views and directions communicated regarding regulatory correspondence, have made my continuance in the company untenable. Hence, I request you to please accept my resignation,” said Goda in his resignation letter.
