The Burman Family, which is the single largest shareholder in Religare Enterprises, on Wednesday acquired an additional 4 per cent stake in the company for about ₹ 308.8 crore, consolidating its grip over the diversified financial services group.

With this move, the shareholding of Burman Family stands increased from 21.18 per cent to 25.18 per cent. All crucial decisions of REL requiring a special resolution can now potentially be blocked by the Burmans, which have gained a higher say in the affairs of REL, say corporate law experts.

This latest open market share purchase comes amid an ongoing tussle with incumbent Chairperson Rashmi Saluja-led REL Board that is stoutly opposing the Burman Family’s efforts to take control of Religare Enterprises.

“We are happy to inform that we have increased our stake to 25.18 per cent in Religare Enterprises Ltd (REL). We reiterate our commitment towards the acquisition of REL. We now eagerly await the remaining approvals necessary to consummate the Open Offer and look forward to Co-operation by the REL Board,” Mohit Burman, Member, Burman Family said on Wednesday after the open market purchase transactions.

Meanwhile, this open market purchase by the Burmans does not signal the end of the ongoing tussle between the two sides. Market regulator SEBI, RBI and IRDAI have to give their assent for any commencement of open offer for the additional 26 per cent stake,  sources said. This is because REL Board has raised fit and proper issues on certain Members of the Burman family as part of the ongoing tussle.

The latest additional 4 per cent stake buy — amounting to about 1.32 crore shares —was done on Wednesday through open market purchases by four Burman family owned entities (MB Finmart, Puran Associates, VIC Enterprises and Milky Investment) for a price of ₹234 per share. This price of ₹234 is slightly lower than the open offer price of ₹ 235 per share.

In September 2023, the Burman family, which owns Dabur, had signalled its intention to acquire a 5.27 per cent stake in REL for ₹407 crore, taking their shareholding to over 26 per cent, triggering an open offer.

Burman Family’s latest additional stake buy of 4 per cent came on the heels of Competition Commission of India (CCI) giving its approval on January 23 for acquisition of a 5.27 per cent stake in Religare Enterprises by entities controlled by the Burman Family, as well as a subsequent open offer to buy upto another 26 per cent of the financial services firm.

Burman family had initially acquired a 9.9 per cent stake in REL in April 2018 and have been periodically raising their shareholding since then. In June 2021, the Burman Family stake was raised to 14 per cent and then an additional 7.5 per cent was acquired in August 2023, taking their shareholding to 21.18 per cent.