Shares of Religare Enterprises Ltd (“Religare’) fell 7.4% within the first 15 minutes of markets opening after the company announced Burman Group’s raise in stake by 26% at a significant discount of 14% from the previous session – Friday’s closing price on BSE.
The stock currently trades at Rs. 255.75, down 6.13% as of now from Friday’s closing price at Rs. 272.45. The stock is 9% away from its 52 week high; 4.5% and 45.5% above its 20 day and 200 day moving averages respectively.
Religare announced in a filing dated 25th September 2023 that the Burman group, through an open offer, will raise the aforementioned stake at Rs. 235 for 90,042,541 shares, aggregating to Rs.21,159,997,135 – approx. Rs. 2,116 crore. Tendering period is 10 Working Days during which the Public Shareholders may tender their Equity Shares in acceptance of the Offer, which shall be disclosed in the LoF. The Offer Price will be paid in cash, in accordance with Regulation 9(1)(a) of the SEBI (SAST) Regulations.
M.B. Finmart Private Limited (“Acquirer 1”), Puran Associates Private Limited (“Acquirer 2”), VIC Enterprises Private Limited (“Acquirer 3”), and Milky Investment & Trading Company (“Acquirer 4”) are the entities in which various members of the Burman Group/ Family hold beneficial interest and the entities through which the transaction will take place.
Acquirer 1 currently holds 13,702,636 shares (4.17% of the outstanding equity and 3.96% of voting share), which after the transaction will end up at 19,474,594 shares (5.93% of the outstanding equity and 5.62% of voting share). Acquirer 2 currently holds 26,331,432 shares (8.02% of the outstanding equity and 7.6% of voting share), which after the transaction will end up at 32,103,390 shares (9.78% of the outstanding equity and 9.27% of voting share).
Acquirer 3 currently holds 20,206,021 shares (6.15% of the outstanding equity and 5.83% of voting share), which after the transaction will end up at 25,977,979 shares (7.91% of the outstanding equity and 7.5% of voting share). Acquirer 4 currently holds 9,530,705 shares (42.9% of the outstanding equity and 2.75% of voting share), which after the transaction will end up at the place.
Written by Sandeep
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