New Delhi [India], January 24 : The Competition Commission of India (CCI) has granted 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 CCI, this significant development is poised to bring strategic changes to the shareholding structure of Religare Enterprises Limited.
The proposed combination involves the acquisition of 5.27 per cent of the total issued and outstanding equity share capital of Religare Enterprises Limited through open market purchases.
Additionally, the plan includes an open offer for up to 26 per cent of the Total Expanded Voting Share Capital of Religare under the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The acquiring entities, namely Puran Associates Private Limited, MB Finmart Private Limited, VIC Enterprises Private Limited, and Milky Investment and Trading Company, collectively referred to as the Acquirers, are systematically important non-deposit accepting non-banking financial companies (NBFCs).
These entities primarily engage in making investments in capital markets and providing secured and unsecured loans.
The Acquirers are under the control of members of the Burman Family, which has diversified investments across various sectors such as home healthcare, restaurants, insurance, consumer goods, and FMCG.
Religare Enterprises Limited, a public limited company listed on the BSE and the National Stock Exchange 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 involved in the financial services business through its subsidiaries and operating entities.
The company's focus areas include general insurance, provision of loans to SMEs, housing finance, and retail broking.
While CCI has granted approval for this shareholding acquisition, it is important to note 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 detailed order from the CCI regarding this approval will be issued in due course.
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