India’s Religare said the US dealer had made a competitive offer for the stake.

By Aditi Kalara

NEW DELHI (Reuters) – India’s Religare Enterprises has offered a 26% stake to a U.S. trader, the latest twist in a battle for control of the financial firm that rejected another bid as too low.

India’s billionaire Burman family, which founded and controls consumer goods maker Dabur India, raised its stake in Religar to about 25 percent in September 2023, raising what it called an open buyback of more shares.

Burmans plans to buy 26% more Religare to strengthen its presence in India’s fast-growing financial services sector in an open pricing process that begins on January 27, but Religare’s independent directors this week suggested a 235 rupee discount. The stake was very low.

In a stock exchange filing late Friday, Religare shared a letter from US entrepreneur Digvijay “Danny” Gaekwad’s firm seeking permission from India’s market regulator SEBI to make an open offer to the Indian company at 275 rupees per share, a 17% premium to the current offer.

Burman family representative Mohit Burman and market regulator SEBI did not immediately respond to questions for comment on Saturday. Florida-based Gakwed did not immediately respond to a Reuters email seeking comment outside regular U.S. business hours.

Religare shares closed at 249.40 rubles on Friday, giving it a market value of 81.83 billion rubles ($949.30 million).

If the Burmans take over Religar, they will clash with other Indian billionaire families in the financial services business, including Mukesh Ambani’s Jio Financial Services and family-controlled Bajaj Finance.

But Burman Religare’s bid has faced regulatory and legal challenges.

Earlier this week, Religare revealed that a minority shareholder had approached the Delhi High Court seeking to stop Burman’s open offer bid.

Legal documents show that the shareholder holds 500 shares in Religare, and the court said on Tuesday that Burmans and SEBI’s announcement and any subsequent action – such as an open offer – “will be subject to the outcome”.

($1 = 86.2000 Indian Rupees)

(Reporting by Aditya Kalara and CD Nayak; Editing by Muralikumar Anantharaman)