CCI Greenlights Dabur Owners' Acquisition of 5.27% Additional Stake in Religare

The Competition Commission of India (CCI) has approved entities linked to the Burman family, owners of FMCG giant Dabur India, to acquire an additional 5.27% stake in Religare Enterprises Limited (REL). As of December 31, 2023, the Burman family already held a significant 21.17% stake in Religare, making them the largest single shareholder in the company.

Key Details:

• Entities controlled by the Burman family, including Puran Associates Private Limited, MB Finmart Private Limited, VIC Enterprises Private Limited, and Milky Investment and Trading Company, will acquire the additional stake in Religare.
• The proposed combination involves acquiring 5.27% of Religare's total equity share capital through open market purchases and an open offer for up to 26% of the total expanded voting share capital.
• As of December 31, 2023, the Burmans' existing stake in Religare was at 21.17%.
• In September of the same year, Dabur owners expressed their intention to expand their voting share capital to 26% by acquiring the additional stake for ₹2116 crore, at ₹235 per share.
• The proposal faced challenges when the Mumbai Police registered an FIR against 32 individuals, including Dabur chairperson Mohit Burman and director Gaurav Burman, in connection with the Mahadev app betting case.
• The Burman family, dismissing the allegations as 'false and baseless,' labeled the FIR as an 'arm-twisting bid' to hinder their Religare expansion plan.

The CCI's approval marks a significant development in the ongoing saga, allowing the Dabur owners to proceed with their plans to increase their stake in Religare despite the hurdles encountered earlier.