| Company | Value | Change | %Change |
|---|
Gaekwad had submitted applications via letters dated January 24, January 26, and February 1, 2025, but SEBI ruled that he neither applied for the necessary regulatory approvals nor demonstrated the financial capability required for the bid.
In its February 14 order, SEBI stated: “As the Applicant has sought to make a competing open offer for 55% of the outstanding share capital of the Target Company, any such open offer can succeed only if required regulatory approvals are obtained by the Applicant from various regulators, including SEBI and RBI. It is noted that the Applicant is yet to apply for any of such approvals. Further, even if applications are made by the Applicant for such approvals, there is no certainty that the approvals would be granted in the first place. Further, it is noted that in case the Applicant applies for various regulatory approvals, the processing of such applications is likely to take time.”
SEBI also noted that allowing such an attempt would be prejudicial to the Burman Group, which has already invested significant time, effort, and resources into making its open offer, as well as to shareholders who have tendered their shares.The regulator further questioned Gaekwad’s financial capability to meet his obligations. His offer of ₹275 per share was ₹40 higher than the Burman Group’s bid of ₹235 per share, yet SEBI observed that he failed to prove his ability to meet the financial requirements for the proposed ₹5,000 crore offer.
Also read: Battle for Religare: US investor Gaekwad fails to pay ₹600 crore as per SC deadline of Feb 13
“As on the date of this order, the Applicant has failed to deposit ₹600 crore, as directed by the Hon’ble Supreme Court of India vide its order dated February 07, 2025, read with order dated February 12, 2025, which would have shown the Applicant’s commitment towards making the competing open offer. In the absence of adequate proof of financial resources required for making the competing open offer, the Application by the Applicant does not appear to be bonafide. It seems frivolous and aimed solely at hindering the open offer process,” SEBI stated.
With this ruling, Gaekwad’s attempt to challenge the Burman open offer for Religare appears to have reached a dead end, paving the way for the Burman Group to proceed with closing its acquisition.
