(Reuters) -The Reserve Bank of India (RBI) has approved billionaire Burman family’s plan to buy more shares in financial services provider Religare Enterprises, the company said in an exchange filing on Tuesday.
The Burmans, who founded and control consumer goods conglomerate Dabur India, raised their stake in Religare to nearly 25% in September last year, triggering a so-called open offer to buy more shares.
They planned to buy around 26% more of Religare to bolster their presence in the rapidly growing financial services sector, but Religare refused to apply for regulatory approvals for the open offer.
Religare sought to prevent the Burmans from raising their stake, saying the offer was “riddled with irregularities and statutory violations and cast serious doubts on the fit and proper status of the acquirers”.
The Burmans then approached the Securities and Exchange Board of India (SEBI), which, in June, asked Religare to apply for regulatory approvals for the open offer to go ahead.
The RBI’s nod is subject to the acquirers submitting a “concrete” consolidation plan with specific timelines, and the acquisition completing within a period of one year, the regulator’s letter showed in the filing sent to exchanges.
Religare’s shares closed 3.5% higher on Tuesday and have gained 35% so far this year.
(Reporting by Sethuraman NR; Editing by Savio D’Souza)
