Florida investor makes counter-offer for Religare Enterprises

A Florida-based investor has made a counter-offer to acquire Religare Enterprises (REL) in a new development regarding the Burman-Religare deal. This unexpected move comes as the Burmans of Dabur are about to launch their open offer for the Delhi-based company. Digvijay (Danny) Gaekwad's offer to purchase Religare shares at Rs 275 each represents a 17% premium over the Burmans' offer.

The proposed competing open offer will target 26% of REL's outstanding share capital.

Gaekwad stated in a letter to Sebi chairperson Madhabi Puri Buch, "We believe that the Burmans' open offer price of Rs 235 per equity share significantly undervalues the true worth of REL and is detrimental to shareholders. When the offer was made on September 25, 2023, the price was already at a 15% discount to REL's prevailing market price of approximately Rs 271 per share. Even taking into account the closing price of REL shares on January 22, 2025, the Burmans' offer price reflects a steep discount of 7%."​