US Investor Makes Counter Offer to Acquire 55% Stake in Religare Enterprises

US-based investor Digvijay (Danny) Gaekwad has made a counteroffer to acquire a 55% stake in Religare Enterprises Ltd (REL) through a cash offer of Rs 275 per share. The offer was made on Friday, just days before the Burman family's open offer of Rs 235 per share was set to begin. Gaekwad's proposal, subject to approval from India's market regulator SEBI, is seen as a direct challenge to the Burmans' bid.

Gaekwad, founder of Nextgen Digital Solutions (NDS) in Florida, made the offer through Danny Gaekwad Development & Investments, stating in a letter to SEBI that his revised offer would comply with regulatory guidelines. He pointed out that, if fully accepted, his stake in REL would surpass the Burman family's post-offer holding of 53.94%. Gaekwad’s offer represents a 17% premium over the Burman family's price and a 24% premium to REL’s 60-day average stock price.

The move is expected to intensify the competition for control of REL, potentially benefiting shareholders with a higher offer price. Gaekwad’s NDS provides IT solutions to small and medium-sized businesses, and he also operates businesses in hospitality and real estate.