Religare Enterprises Surges 9% as Burman Family Takes Control

A New Chapter for Religare Enterprises

Shares of Religare Enterprises Limited (REL) surged by more than 9% on February 21, 2025, after the Burman family, renowned promoters of Dabur India, officially acquired a controlling stake in the company. This development marks the conclusion of a protracted 18-month takeover battle, positioning the Burman family as the new promoters and signaling a significant shift in the company's leadership and strategic direction. The market's positive reaction underscores investor confidence in the new management's ability to steer the diversified financial services group towards stability and growth.

The Path to Gaining Control

The Burman family's journey to control Religare was a calculated and persistent effort. Starting with initial stake acquisitions in 2018, their involvement deepened significantly in September 2023 when they announced a substantial open offer. At that time, their four investment entities—M.B. Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company—collectively held a stake of around 21%.

To solidify their position, the family launched an open offer valued at ₹2,116 crore to acquire an additional 26% stake from public shareholders. In a further move to increase their holding, three of the family's entities purchased an additional 3.6% stake for ₹277 crore through open market transactions in January 2024. These strategic acquisitions progressively increased their shareholding, paving the way for them to become the single largest shareholder bloc in the company.

The Open Offer and Its Outcome

The open offer, priced at ₹235 per share, aimed to acquire up to 9.004 crore equity shares. The offer period ran from late January to early February 2025. Despite the ambitious target, the response from existing shareholders was lukewarm. Data revealed that only 231,025 shares, equating to just 0.07% of the company's equity, were tendered against the 26% stake on offer. However, this tepid response did not derail the takeover. The Burman family's existing substantial stake, combined with prior open market purchases, was sufficient to secure a controlling interest. Following the completion of the process, their total shareholding increased to 8.32 crore equity shares, representing 25.16% of Religare's total paid-up capital, which was enough to designate them as the new promoters.

Regulatory Approval and Conditions

A crucial milestone in the takeover process was securing approval from the Reserve Bank of India (RBI) in December 2024. The central bank permitted the Burman family to increase their stake through the open offer but attached specific conditions. The RBI mandated that the existing board and management structure of Religare Enterprises remain unchanged for the time being, denying the request to appoint four new directors proposed by the Burmans at that stage. Furthermore, the RBI directed the acquirers to consolidate the Non-Banking Financial Companies (NBFCs) within both the Burman and Religare groups. A concrete consolidation plan is to be submitted within 90 days, with the full consolidation to be completed no later than March 31, 2026.

Market Reaction and Investor Sentiment

The stock market reacted positively to these developments at multiple stages. When the RBI granted its approval for the open offer, Religare's share price hit a 52-week high. The final confirmation of the takeover on February 21, 2025, triggered another sharp rally, with the stock climbing over 9% to trade at ₹239.09 on the NSE in early hours. This surge reflects strong investor optimism that the new leadership will bring enhanced corporate governance, a clear strategic vision, and long-term value creation to the company, ending a period of uncertainty.

Future Vision and Financial Commitment

In a media statement, a spokesperson for the Burman family expressed gratitude to regulators and shareholders for their trust. They affirmed their intention to work closely with Religare's existing leadership and board to refine the company's strategic direction. The focus will be on strengthening governance frameworks and unlocking long-term value across all business verticals, which include SME loans, affordable housing finance, and health insurance.

Demonstrating their long-term commitment, Religare's board later approved a proposal on February 3, 2026, to raise ₹1,500 crore through a preferential allotment of warrants. The Burman family pledged to infuse ₹750 crore, accounting for half of the total fundraise. This capital injection is intended to support business expansion plans and fund new strategic initiatives, reinforcing their commitment to the company's growth trajectory.

Conclusion

The successful acquisition of Religare Enterprises by the Burman family marks a pivotal moment for the financial services firm. After a lengthy and complex takeover process, the company now has a stable and committed promoter group at the helm. While regulatory conditions require a phased approach to management changes and business consolidation, the market has welcomed the transition with optimism. The focus now shifts to the execution of the Burman family's strategic vision and their ability to drive sustainable growth and value for all stakeholders in the years ahead.