Dabur’s attempt to acquire a majority stake in financial firm Religare Enterprises Ltd (REL) through an open offer has encountered resistance from REL’s current management. They have raised concerns about the valuation of the company and the share price offered in the open offer. It is suspected that the Burman Group strategically triggered the open offer by acquiring 7.5% of REL shares to bring down the share price to match their proposed open offer price. REL’s shares have seen a consistent decline since the open offer announcement. Market capitalization has also decreased. This takeover bid, if successful, would give Dabur a controlling stake in a $1 billion company that competes with Bajaj Finance and Jio Financial Services. Ventura Securities has initiated coverage on REL shares with a buy call, anticipating robust financial growth and valuation re-rating.
Dabur’s Religare Takeover Faces Valuation and Share Price Dispute
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