Interesting boardroom drama.
Forbes covered the story so far on 24-Nov-23.
Briefly, the company has had no promoters since the Singh brothers were convicted.
A board of independent directors has been in charge.
The Burmans want to take control and have made an open offer to get their holding above 26%. But the board is resisting. They think the offer price of Rs 235 per share is too low. Timing is ‘fishy’ says Religare board member Hamid Ahmed. The board appears to allege collusion between the Burmans and the Singh brothers.
There are countercharges of failure of corporate governance and excessive remuneration at the company. See deepuji2008’s post above.
Kedara Capital, the PE fund, holds 16% of Care Healthcare which is the flagship subsidiary of Religare Enterprises. Kedara came out with a statement supporting the Care management.
But the regulator is asking questions about the ESOPs.
Interesting interview with Mohit Burman on CNBC.
Once the regulators approve the open offer, this could resolve quite quickly with the Burmans in control and the current board out. Or could this end up in the courts and get dragged out?
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