US investor offers to acquire 55% stake in REL

Gaekwad is the founder of US-based Nextgen Digital Solutions (NDS), a Microsoft Gold Partner, with presence in India.

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.”

“Assuming full acceptance of our proposed competing open offer, our shareholding in REI. (along with persons acting in concert) will be greater than the proposed post-offer shareholding of the Burman family acquirer entities (53.94 per cent of the issued and outstanding equity share capital of REL) as specified in their public announcement dated September 25, 2023,” the letter said.

“We note that pursuant to the Burmans’ open offer the shareholding of the Burman family acquirer entities will reach approximately 53.94 per cent of the issued and outstanding equity share capital of REL, assuming full acceptance. In order to comply with the regulatory requirements stipulated in Regulation 20(2) of the SAST Regulations, we must revise our offer size,” it said.

Gaekwad’s offer represents a 17 per cent premium to the Burmans’ open offer price of Rs 235 per share. The counter offer, made through Danny Gaekwad Developments & Investments Florida, also boasts a 24 per cent premium to the 60-day volume weighted average price of Religare’s shares, which stood at Rs 221 as of September 22, 2023.

REL shares closed 0.28 per cent lower at Rs 249.35 on the BSE on Friday.

The development is likely to spark a bidding war for control of Religare Enterprises, with the Burmans facing a challenge to their initial offer. The move is expected to benefit shareholders, who stand to gain from the increased offer price.

Gaekwad’s 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.