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A day after launching an open offer to gain control of Religare Enterprises Ltd (REL), the Burman Family has declared their unwavering commitment to financial services. They emphasized that all future financial investments would be channeled through the Religare platform, with a strong dedication to enhancing REL’s shareholder value.
Mohit Burman, Chairman of Dabur India and a Burman family member, highlighted in an email interview the extensive history of Burman Family’s presence in financial services and expressed confidence in scaling businesses like insurance and broking under the Religare platform.
”We would do whatever it takes to enhance shareholder value of REL. We have been in financial services for 25 years. Starting from and including ABN Amro securities, Aviva life insurance, Universal Sompo General insurance, Fidelity Mutual, Espírito Santo , DMI Finance-. We will continue to invest in financial services through Religare”, Burman said.
He was replying to a question on whether Burman Family’s move to gain control of REL be seen as a prelude to its larger aggressive play in the financial services space in the days to come.
The Burman family is investing ₹2,116 crore for a 26 per cent additional stake in REL, raising their total ownership to approximately 52 per cent.
Asked as to what was the strategic intent behind proposed acquisition of controlling interest in REL, Burman said that Religare is a “good platform with some very strong businesses” that are run by able professionals.
“Whether it’s insurance or broking we believe given the right backing and funding these businesses can scale better and faster”, Burman said.
The strategic intent of the Burman Family is to leverage REL’s robust businesses and competent professionals for accelerated growth.
Burman Family plan to outline business strategies following the completion of the open offer in accordance with SEBI takeover regulations.
While the Burman family has been gradually increasing its stake in REL, their current holding stands at 26 per cent. REL encompasses SME finance, health insurance, retail broking, and affordable housing.
REL is the holding company for four key businesses i.e. SME Finance via Religare Finvest (RFL), Health Insurance via Care Health Insurance (CHIL), Retail Broking via Religare Broking (RBL) and Affordable Housing via Religare Housing Development Finance Corporation (RHDFCL).
Regarding potential IPOs for REL subsidiaries, Burman stated it’s too early to comment but emphasized their commitment to enhancing shareholder value. They are open to restructuring businesses if needed after gaining control. As for reinvigorating Religare Finvest, which faced recent challenges, Burman mentioned that plans would be evaluated post-completion of the open offer and management control acquisition.
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