Rashmi Saluja Exits Religare Board as Burmans' Acquisition Offer Advances

By: WE Staff | Friday, 14 February 2025

• Rashmi Saluja leaves Religare after failing shareholder approval, as the Burmans' offer increases their stake to 53.94%.
• The Burmans accused Saluja of insider trading, while REL's directors raised concerns with regulators.

After failing to receive shareholder approval for reappointment, Religare Enterprises announced that executive chairperson Rashmi Saluja is no longer a director. Her departure coincides with the Burman Family’s open offer to acquire an additional 26% stake in the company. She ceased to be a Non-Independent Director on February 7, 2025.

They stated, "This is to inform you that the company's 40th Annual General Meeting (AGM) was held on February 7, 2025. One of the agenda items (Item No 2) as per the AGM notice approved by the Board of Directors of the company concerning the reappointment of Rashmi Saluja, the executive chairperson of the company and the only non-independent director on the board of REL". The Scrutinizer's report stated that 97% of votes were cast against the resolution.

Religare, a Non-Banking Finance Company, is governed by both the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Following clarification from the RBI on Thursday, Rashmi Saluja, executive chairperson, has ceased to be a director of the company.

Burmans' open offer to acquire an additional 26% stake in Religare began on January 27, after regulatory approvals. The Supreme Court extended the offer to February 12 while reviewing a competing bid from US investor Danny Gaekwad, who must deposit Rs 600 crore by the deadline. The offer targets up to 9,00,42,541 equity shares, representing 26% of Religare's expanded voting share capital.

As of September 30, 2024, Burmans, through four entities, own a 25.12% stake in REL. Following the open offer, their stake would rise to 53.94%. In September 2023, the Burman family, promoters of Dabur India, announced a Rs 2,116 crore open offer to acquire up to 26% of REL.

After the open offer bid, the Burmans filed a complaint with Sebi, accusing the chairperson of insider trading and board manipulation. In response, REL's independent directors disputed the claims, raising concerns of fraud and violations by Burman entities, and approached regulators including Sebi, RBI, and IRDA.