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Market regulator Securities and Exchange Board of India (Sebi) on Tuesday returned a letter by US-based entrepreneur Digvijay ‘Danny’ Gaekwad seeking permission to make a “competing open offer” for an equity stake in Religare Enterprises (REL).
REL shared Sebi’s response to Gaekwad’s proposal to acquire 55 per cent of REL at Rs 275 per share to the stock exchanges on Tuesday. “The letters submitted by Digvijay Laxmansinh Gaekwad are being returned since the same is not an exemption application in terms of Regulation 11 of SEBI (SAST) Regulations, 2011,” Sebi said in a letter to the company.
Market sources said Sebi did not accept the Gaekwad’s offer as it did not fall within the stipulated timelines and it failed to follow the required process, including appointment of investment bankers.
REL shares fell 3.69 per cent to Rs 243.05 on the BSE on Tuesday.
Gaekwad’s counter offer of Rs 275 a share in cash was made on Friday evening, just two days before the open offer of Rs 235 a share made by the Burman family of the Dabur group opened on Monday.
In a letter to the SEBI, Danny Gaekwad Development & Investments said “the offer size for our proposed competing offer stands revised… our proposed open offer will be for 55 per cent of the outstanding equity share capital of REL in compliance with Regulation 20(2) of the SAST Regulations.”
The Burman family claimed that the competing offer falls outside the 15-day window stipulated by the Sebi takeover code, following their initial offer on October 4, 2023. “In his correspondence, he has only made a Request for Permission to the Sebi seeking their permission to make a competing open offer. Gaekwad had to make the competing offer, if at all, within 15 days from the date of public statement, which was made by the Burman Group on October 4, 2023 but he did not do so,” the statement by the Burmans said.
Gaekwad is the founder of US-based Nextgen Digital Solutions (NDS), a Microsoft Gold Partner, with presence in India. NDS has been providing IT end-to-end solutions to small and medium-sized businesses with IT enterprise solution services that were previously only available and affordable to Fortune 300 companies.
Danny also owns and operates ‘DG Hospitality’, the hotel restaurant management consulting company which does sales and the marketing for hotels & restaurants from inception to operation. “Danny Real Estate division is thriving since last 20 years. He owns 1000s of residential lots across Florida and Kentucky State. Dozens of residential rental condos across the Florida,” NDS website says.
