Sebi rejects offer of Gaekwad to buy stake in Religare – The Times of India

MUMBAI: In a setback to Digvijay Gaekwad‘s plans to make a competing offer for Religare Enterprises, the Securities and Alternate Board of India (Sebi) rejected his software on Friday, citing a scarcity of proof of monetary assets and terming the applying as frivolous.
In his software, Gaekwad, who’s a Florida-based mostly investor, had requested Sebi’s exemption from strict enforcement of regulation 20 of takeover guidelines by permitting him to make a competing offer to purchase 55% of Religare at Rs 275 per share.
Sebi stated Gaekwad had “failed to reveal his means to meet the monetary obligation for making the competing open offer”. It additionally famous Gaekwad’s non-compliance with the Supreme Court docket order, stating that he had “failed to deposit Rs 600 crore, as directed by the Supreme Court docket, which might have proven his dedication in direction of making the offer”. The rejection of Gaekwad’s software removes a hurdle for the Burmans, the most important shareholders of Religare, who’ve been trying to achieve management of the corporate.
“Within the absence of sufficient proof of monetary assets required for making the offer, the applying doesn’t seem to be bonafide,” Sebi stated. It deemed the applying frivolous and geared toward hindering the open offer course of of the Burmans. In consequence, it disposed of the applying filed by Gaekwad. Friday’s order follows Religare’s announcement on the departure of its chairperson Rashmi Saluja from the corporate.
Shareholders had voted in opposition to her reappointment, ensuing in the termination of her directorship.
The Burmans had made an open offer for a further 26% stake in Religare at Rs 235 per share, however they solely managed to purchase 0.26% in the open offer that closed on Thursday.