Religare Enterprises Chairperson Clarifies Stand On Burmans' Allegations

Religare Enterprises Ltd Chairperson Rashmi Saluja on Friday said she has nothing personal against Burmans who are locked in a battle with the management for control of the financial services firm, triggered by an open offer bid.

Burmans, who hold around 25% of REL through four entities -- MB Finmart, Puran Associates, VIC Enterprises, and Milky Investment and Trading Co -- announced an open offer on Sep. 25, 2023, to acquire a 26% stake from public shareholders.

Soon after the open offer bid, Burmans complained to capital market regulator Sebi for violation of insider trading rules by the chairperson and appointment of board of her choice.

Refuting all charges, Saluja said, "We have had fantastic relationship with all the shareholders including Burmans for the last 6 years. They have invested in the company looking only at the progress and how the management has worked in the last 6 years."

She stressed that as an executive chairperson, she would be very happy to find a solution in the best interest of the organisation.

"This is going to be totally based on concerns that has been raised by the board should be put to the rest...whatever the way forward comes, it will be in the best interest of the organisation. We want the share price to go up, we want the value to be unlocked as early as yesterday," she said.

"I have nothing personal (against Burmans). I am here in capacity of executive chairperson for last 6 years. I have nothing against anybody...if they want I cannot stop...I have no grudges. I have one interest to play up that is the company's interest," she added.

On the report published by proxy advisory firm InGovern Research, Saluja said, the company has served them a notice as it has tarnished the image of the company.

They (proxy advisory firm) had published inappropriate and factually incorrect information against the company, she added.

Asked about the status of Rs 2,116-crore open offer by Burman entities, she said, it has not got through.

The regulators are looking at the concerns raised by the board and once they clear the air on their concern, the board would take a call on the open offer, she added.

Despite challenges, she said, performance of REL has improved and it is also ratified by rating agencies by improving rating.

Regulators have been completely satisfied, she said, adding moral of employees is also high and there has been hardly any attrition in the company.

Consolidated revenue was Rs 6,299 crore in FY24, up by 30% as compared to the previous year while profit before tax was Rs 217 crore (before exceptional items) as compared to a loss of Rs 31 crore in FY23, she said.

Despite certain challenges, REL has stayed on course to grow steadily. All four businesses have reported another profitable year, she said.

During the fiscal, Care Health Insurance and Religare Broking Ltd have reported their best performance to date.

"We remain optimistic about the future of all the businesses and are confident in our ability to continue delivering value to all our stakeholders. Care Health Insurance posted an all-time high premium collection of Rs 7,022 crore in FY24."

"Our Securities Broking business registered a bumper year of growth with income amounting to Rs 368 crore for FY24, a jump of 29% as compared to the previous year," she said.