Call on Burman family open offer rests with Sebi: Religare’s Saluja

Rashmi Saluja, the chairperson of Religare Enterprises Limited (REL), a diversified financial services company, on Friday refuted allegations of obstructing the Burman family’s open offer. She clarified that she harbours no personal issue with the promoters of consumer goods major Dabur, and that the decision to approve the open offer rests with the Securities and Exchange Board of India (Sebi).

The Burman family, the largest shareholder in REL with a 21.2 per cent stake, announced in September 2023 an offer to increase its stake in the company by acquiring additional shares for Rs 2,116 crore at Rs 235 apiece.

However, the board of REL has expressed concerns around whether the proposed acquirers would meet the “fit and proper” criteria, citing instances of fraud, market manipulation, and other violations in a letter to the markets regulator.

Addressing media persons on Friday, Saluja said: “The open offer assumedly cannot move forward until all the allegations or all the concerns are being addressed…The regulator would do an independent investigation and the moment the investigation is over, I’m sure they would refer back to the court and to us. Until that time, we are also waiting.”

REL’s shares have fallen by over 5 per cent amid the tussle between its management and the Burmans. Saluja expressed her concern over the underperformance of the stock price as it affects the company’s capital raising capacity.

Saluja also dismissed allegations of insider trading in REL and irregularities surrounding the issuance of an employee stock option plan (ESOP) in Care Health Insurance. She asserted that all due procedures were followed and that the ESOPs issued to her were part of her remuneration and approved by a special resolution, indicating that she has the full support of the public shareholders.

The Insurance Regulatory and Development Authority of India (Irdai) is investigating the stock options allotted to Saluja which constitute nearly 2.5 per cent of the shareholding in Care Health. She is the non-executive chairperson of Care Health, REL’s insurance arm.

She said that the board is co-operating with Sebi and Irdai and has responded to all queries raised by the regulators.

The Burman family had claimed that Saluja sold her 1.29 million shares last year after a family representative informed her of its intention to make an open offer to acquire control of the company. While Saluja denied having knowledge of the open offer before selling her REL shares, she confirmed that she had met Anand Burman a day earlier, not a representative.

Saluja also said that the company had offered a board position to Anand Burman, which he declined. She stated that the REL board intends to have someone of his stature and not some other nominee.

Regarding the concerns raised by proxy advisory firm InGovern Research, she said the report was published without incorporating the company’s views and that REL has sent a defamation notice to the voting advisory firm.

First Published: May 31 2024 | 9:08 PM IST