For Danny Gaekwad, Religare’s public offer may be a tricky problem

On the day before the Burman family’s public offer of Religare Enterprises LTD, Indian American businessman Digvijay Danny Gaekwad tried to expand the repayment of the financial group; however, the two people close to the Indian Securities and Exchange Commission (SEBI) decision -making, and San San Experts from the Famous Securities Law said that late entry may not be reviewed by regulatory censorship.

GaekWad wrote to the chairman of Sebi Madhabi Puri Buch on Friday, requesting allowing a public offer to allow Religare, acquired 26% of the shares, and the acquisition offer to at least 55% on Sunday. exist $At $ 275 per share, the competitive quotation of GAEKWAD is 17% higher than the Burmese quotation. $235, will involve investment $50 billion rupees. On Friday, Religare’s stock price closed $249.35, opposed $275 was the day before the Burmese announced the public offering plan for the first time.

However, according to the above people, SEBI is unlikely to allow GAEKWAD to continue.

“This is first because according to the current acquisition rules of the SEBI, any repay must be issued within 15 days after the original acquisition party issued a detailed public offer, or according to Article 20 of SAST regulations, it will be proposed within 20 days. Cases of the white knight defense clause, “the first person said. SAST represents a large number of shares acquisitions and acquisitions.

The inquiries sent by emails to Sebi and Religare have not been answered. None of the telephones, text messages, and emails to GaekWad received a reply.

The Burman family already holds more than 25.18%of Religare. If public shareholders fully accept the upcoming offer acquisition, the family’s total shares will reach 53.94%. GAekWad expanded the offer on Sunday, because the acquisition specification stipulates that any competitors’ bids should be more than the shares proposed by the original acquisition.

Potential obstacle

Another potential obstacle is the timing.

“Article 20 of the SAST regulations has a clear timetable for competitive bids, and strictly abide by these timetables is vital to such open offers. Human Ramesh Vaidyanathan said. “Secondly, the timing of the competitive offer is doubtful. The offer was proposed on the day before the Burman family’s public offer on Monday, which indicates that this may not be a real competitive quotation, but only for other purposes of the transfer. In addition, The GAEKWAD entity did not comply with the legitimate program that should be followed in the competitive offer, which determined the qualifications of the fund and the competitor of the competitors.

Religare has Care Health Insurance LTD. $100 billion rupees have shown amazing growth stories in the past seven years. The Religare board of directors welcomed the Burmese’s offer in 2023, and opposed it because it was said that the offer was too low and questioned the proper identity of the Burmese people. Although the Myanmar people accused Religare and its chairman Rashmi Saluja committed various light crimes, the company resolutely defended her and denied these allegations. After being approved by the Bank of India, market and insurance regulators, public offering will be listed on Monday.

“There is a formal procedure to propose a competitive offer. Only in this way can it be accepted. The authenticity of the competitive offer, the qualifications of the acquirer, and the source of funds are part of the formal procedure. Because GAEKWAD’s competition offer proposal was proposed by a letter, it did not have legal effect.

Lack of information

Another worrying reason is the lack of information about how GAEKWAD is on sale for public offering.

“This entity is neither an investor in a foreign investment portfolio, and there is no meaningful business in India. People do not know the predecessor, source of funds and the ultimate beneficiaries of this GAEKWAD entity. Schriram Subramanian, the founder and general managing director of Ingovern Research Services.

“SEBI has many reasons for rejection of GaekWad. First of all, any competitive offer must be proposed within 15 days after public announcement in 2023. Second, any competitive offer must be proposed by commercial bankers and attached funds proof. GaekWAD entity There is no follow -up process, which indicates that the competitive offer is not serious and it has caused questioning of the credibility of the entity. “

He said that due to the rejection of the Burmese’s acquisition, GAEKWAD’s attempts caused more problems. Subramanian added: “As a responsible market regulatory agency, when the trusted entities with 25% of the equity initiate an existing public offer, SEBI cannot allow sudden competitive offerings that violate all procedures and regulations.”

Counterattack

On Sunday, the Burmese counterattacked the Gaakvad’s plan.

“If so, GaekWAD must make a competitive offer within 15 days from the day of the Burman Group on October 4, 2023, but he has not done so. Now more than 400 days have passed, and anyone has the right to propose to propose proposal Effective competitive public offers. The request of the request is completely lacking in substantive content and sincerity, and it does not show any source of funds, and does not even indicate the ability to purchase proposed stocks. It spreads the so -called letter that lacks any sincerity, which exudes the flaws, deception, and serious recklessness in Rone’s administrative leadership. express.

However, some Religare investors even think $The quotation of $ 235 per share proposed by the Burman family may only attract a few shareholders. “exist $235, public offering may only attract a few people who buy stocks at a cheap price. Since the Burman family proposed its initial acquisition offer in 2023, Religare’s stock price has risen sharply. As a result, the price can be better, “said a shareholder of Religare, who did not want to disclose his name.

The intention of GAEKWAD to propose a competitive offer at this stage is not very clear, but the price of the offer $275 may just have doubts in the hearts of potential public investors who try to sell their stocks during public offering. After GAEKWAD proposed a quotation, they may think that their stocks may be filed higher than others in the future than their stocks. $235 The quotation proposed by the Myanmar family. This may affect some shareholders’ decisions on selling their shares in the Burman family’s offer, “said Vaidyanathan of BTG Advaya.