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"The Burman family is likely to infuse ?2,000 crore- the funds initially earmarked for the open offer-by subscribing to preferential shares, thereby increasing their stake to over 50%," sources said. The new promoters are also expected to undertake a rebranding exercise, which may include renaming the company and its subsidiaries in the coming months to align with the Burmans' strategic vision, said the people cited above.
In a stock exchange filing on Thursday, the company posted a letter written by the Burmans announcing the change in control and disclosing the acquisition of a total 83.2 million equity shares representing 25.16% of the outstanding paid-up share capital of the company.
REL’s main businesses include lending (Religare Finvest), health insurance (Care Health Insurance) and retail broking (Religare Broking). Last year, State Bank of India, one of the lenders to Religare Finvest, removed the company from the Central Fraud Registry database.
“Both Religare Finvest and its subsidiary Religare Housing Development Finance Corp. require fresh capital from the parent company to accelerate growth,” said one of the persons cited above. “The Burmans' capital infusion is expected to provide the necessary boost, helping the lending business expand at a faster pace.”
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A spokesperson for the Burmans said the immediate priority is to establish stability, strengthen governance, and drive sustainable growth. “The Burman Group will work with REL’s leadership and board to reinforce its strategic direction and enhance long-term value creation," the person said. "We have always invested in businesses with strong fundamentals and high growth potential, and we will apply the same disciplined approach to REL with the highest levels of governance, this was the intent with which we launched our open offer for control and we remain committed to that.”
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Unlisted shares of Care Health Insurance are currently trading at a valuation of ?18,000 crore in the unofficial market. REL holds a62.98% stake in Care Health Insurance, officially valued at ?11,200 crore—still significantly higher than REL’s market capitalisation of ?7,373 crore.
The conflict between Religare’s management and the Burman family has significantly impacted the company's affairs. After seven consecutive quarters of profitability since March 2023, the company reported a ?63 crore loss in the quarter ended December 2024.
Religare had been without promoters since February 2018, when its former promoters, Malvinder and Shivinder Mohan Singh of Ranbaxy, were ousted for defrauding REL subsidiary Religare Finvest of nearly ?2,400 crore. The Singh brothers lost control of REL due to the invocation of pledges by lenders. They were arrested along with several other persons in 2019.
A board comprising independent directors was put in place to steer the company to safety and recovery. In December 2019, Rashmi Saluja was appointed chairperson and CEO. In September 2023, the Burman family, which already held a 20% stake in Religare, acquired an additional 5%, triggering a mandatory open offer. That same month, the Burmans announced the open offer to purchase another 26% stake from the public by investing $255 million, aiming to take control of the company.
