Dabur India Chairman Open to 'Amicable Resolution' Amid Spat with Religare Enterprises Board

In a recent development within the Indian investment sector, the Burman family, prominent investors in Religare Enterprises, has been in a dispute over the valuation of their open offer, sparking public attention. Dabur India's Chairman, Mohit Burman, maintained that despite the ongoing disagreement, the family remains open to resolving issues amiably.

Sustained Support Despite Valuation Disagreements

Mohit Burman has emphasized the family's long-standing support for Religare Enterprises, recounting their consistent financial backing over the last half-decade whenever the company required capital infusions. This steadfast commitment has played a pivotal role in solidifying shareholder confidence.

Following the open offer, which was criticized by the Religare management for its share price, Burman defended their decision by stating that the price was determined following the directives of the Securities and Exchange Board of India SEBI. He noted that the management previously sold shares at approximately INR 265-270 each, yet now contests the open offer price of INR 235, despite SEBI's valuation pointing to an even lower figure of INR 220.15 on the launch day.

Acquisition Moves and Stake Building Strategies

Dabur India's Chairman discussed the family's strategic purchasing decisions, buying into Religare in increments to avoid affecting the share price negatively. He revealed that their initial investment occurred when share values were significantly higher, and they continued to provide financial aid even when the company struggled to maintain operations, including paying wages.

Confidence in receiving regulatory nods for the open offer was expressed, with expectations to acquire an additional 5% in Religare Enterprises after approval from regulatory bodies like SEBI, the Competition Commission of India, and the Insurance Regulatory and Development Authority.

Looking Towards a Positive Future

While currently the share price of Religare is below the open offer level, Burman has a resilient outlook for the company. He stressed that the share value would recover as the company overcomes its challenges, and with the entry of strong promoters, the entity would regain its footing. Among the anticipated improvements are the lifting of lending caps, enhanced credit ratings, and a more favorable debt repayment climate.

The Dabur India Chairman concluded by reiterating their willingness to work towards a peaceful settlement with the Religare leadership, circumventing any 'ego battles' to ensure business prosperity. His remarks underline the family's intent to find mutual ground for the betterment of all stakeholders involved, including those associated with the ticker IBN: ICICI Bank Limited.

investment, dispute, resolution