LI Network
Published on: January 25, 2024 at 13:22 IST
The Competition Commission of India (CCI) has given its approval for the acquisition of shareholding in Religare Enterprises Limited by Puran Associates Private Limited, MB Finmart Private Limited, VIC Enterprises Private Limited, and Milky Investment and Trading Company, according to recent reports.
The CCI views this development as strategically significant for reshaping the shareholding structure of Religare Enterprises Limited. The proposed combination entails the acquisition of 5.27% of the total issued and outstanding equity share capital of Religare Enterprises Limited through open market purchases.
In addition to open market acquisitions, the plan includes an open offer for up to 26% of the Total Expanded Voting Share Capital of Religare, as per the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The acquiring entities, collectively referred to as the Acquirers, consist of Puran Associates Private Limited, MB Finmart Private Limited, VIC Enterprises Private Limited, and Milky Investment and Trading Company. These systematically important non-deposit accepting non-banking financial companies (NBFCs) are engaged in making investments in capital markets and providing secured and unsecured loans.
The Acquirers are under the control of members of the Burman Family, known for their diverse investments across sectors such as home healthcare, restaurants, insurance, consumer goods, and FMCG.
Religare Enterprises Limited, a publicly listed company on the BSE and NSE in India, operates as a systematically important non-deposit accepting NBFC. Registered as a core investment company with the Reserve Bank of India, Religare is active in the financial services business through its subsidiaries and operating entities, focusing on general insurance, SME loans, housing finance, and retail broking.
While CCI has granted approval for this shareholding acquisition, it is emphasized that this decision is without prejudice to any proceedings that may be initiated under Section 43A, 44, and/or 45 of the Competition Act, 2002. A comprehensive order from the CCI regarding this approval is expected to be issued in due course.