Religare Enterprises witnessed a sharp decline in its share price after the Burman family announced plans to acquire a controlling stake in the company. The family aims to purchase around 26% of the company's stake for Rs 2,116 crore. As of 1:40 pm, Religare shares were down 5% at Rs 257.80 on the National Stock Exchange (NSE).
The Burman family, known for their consumer goods conglomerate Dabur India, currently holds the largest individual stake in Religare, at approximately 21%. Their move to acquire an additional 26% stake is part of a strategic effort to gain a controlling interest in the financial services firm. This move is driven by their ambition to expand and compete effectively in the rapidly growing financial sector.
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Once the transaction is completed, the Burmans will have the authority to appoint directors to Religare's board and influence changes in the company's management structure, as outlined in the offer document. This strategic acquisition will enable them to play a pivotal role in shaping Religare's future.
Anand Burman, Dabur India Chairman Emeritus, emphasized that the acquisition aligns with their vision to establish a leading financial services platform encompassing lending, broking, and health insurance services. Religare Enterprises currently offers a range of services, including loans to small and mid-sized businesses, health insurance coverage, and broking services. This move reflects the growing potential of the financial services sector in India, in sync with the nation's economic expansion.
The Burman family's substantial investment in Religare signifies their confidence in the company's prospects and their commitment to advancing its role in India's financial landscape.
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