The Religare dispute includes the fight over control between the Berman family, Rashmi Saluja and Danny Gaekwad, marked rival offers, court battles and concerns about corporate governance.
The Berman family is trying to increase their interest in the company. Previously, the Berman family had issued an order through its entities to acquire a maximum of 1.73 crore of shares, accounting for 5.27% of the religious stock, through its entities, at the maximum price of Rs 235 per share.
The move is part of a strategy that exceeds the 25% threshold, causing open offers obligations, as required by regulations governing non-bank financial companies.
Importantly, Danny Gaekwad has made a competing offer of Rs 275 per share for 26% stake, 17% higher than the Berman family’s Rs 235 per share offer. The offer was rejected due to lack of regulatory approval and requirements. However, Gaekwad created another application for market regulators in sought approval of his offer.
Additionally, the Berman family, the company’s largest shareholder, are trying to oust Rashmi Sarjah and raise questions about future leadership and religious control.
Rashmi Saluja is scheduled to retire due to rotation at the annual meeting scheduled for February 7th. As the only non-independent director, her position requires a recurrence at each AGM. Sarja’s main question is that religion should be prevented from voting or implementing a resolution that expels her from the board of directors.
Recently, the Madhya Pradesh High Court and the Delhi High Court have refused to suspend the annual general meeting of religious companies.
