The Securities and Exchange Board of India on Tuesday returned US-based investor Danny Gaekwad’s letter, which sought permission to make a competing open offer for equity shares of Religare Enterprises Ltd. The regulator found that the letter was not an exemption under the security law regulations.
Gaekwad’s offer spoke of a 17% premium over the Rs 235-a-share offer made by the Dabur fame Burman family for a 26% stake in Religare. In addition to this, his offer is for a 55% stake in the company.
In a candid conversation with NDTV Profit on Monday, Gaekwad mentioned, “For any investor, whether in India or abroad, the purpose of investing is to make money.” He said that Religare’s valuation was “more than reasonably low”, making it a lucrative opportunity.
However, when Gaekwad’s offer surfaced, the Burman family had also released a media statement in its response. The statement mentioned that his offer is not a formal one as he has only sought permission from the SEBI to be able to do so. The Burmans further mentioned that Gaekwad is already late in making an offer.
“Mr. Gaekwad had to make the competing offer, if at all, within 15 days from the date of the public statement, which the Burman Group made on Oct. 4, 2023 but he did not do so,” the statement read.
