Religare Enterprises Share Price Surges 4% After Counterbid by U.S. Investor

Religare Enterprises’ share price jumped over 4% in opening trade on Monday, January 27, 2025, defying the broader market’s weak performance, after the company received a counter bid from the U.S.-based investor Digvijay Gaekwad.

This bid comes in response to the Burman family’s open offer for the company. Gaekwad has proposed an open offer to acquire 26% of Religare’s equity at ₹275 per share, which is a 17% premium over the Burman family’s offer of ₹235 per share.

Gaekwad’s Offer Valuation and Concerns

Gaekwad’s offer is also 24% higher than the 60-day volume-weighted average price of Religare shares. In his filing to the Securities and Exchange Board of India (SEBI), Gaekwad raised concerns that the Burman family’s bid undervalues the potential of Religare Enterprises and is detrimental to public shareholders.

He further highlighted that the Burman family had failed to disclose the Reserve Bank of India’s (RBI) conditional approval, which was reportedly granted based on the Burman group’s plans to consolidate several non-banking financial companies (NBFCs) under its control.

Gaekwad’s Vision for Religare

Gaekwad also asserted that, unlike the Burman family, he does not have any NBFC in his group and can therefore focus entirely on Religare Enterprises. He believes this will lead to better performance for the company under stable and committed leadership.

As the bidding war intensifies, Religare Enterprises’ stock and its investors are closely watching developments surrounding the open offer and counteroffer.

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