CCI clears Burman Family group bid to acquire Religare Enterprises

The Competition Commission of India (CCI) has approved the acquisition of shareholding in Religare Enterprises Limited by a consortium of non-banking financial companies (NBFCs) comprising Puran Associates Private Limited, MB Finmart Private Limited, VIC Enterprises Private Limited and Milky Investment and Trading Company.

The consortium partners, all controlled by the Burman Family, have proposed to acquire 5.27 per cent of the total issued and outstanding equity share capital of Religare Enterprises Limited through open market purchases, and another 26 per cent equity in an open offer, as per Sebi takeover regulations.

The acquirers are all systematically important NBFCs and are engaged primarily in the business of making investments in capital markets and providing secured and unsecured loans. 

The Burman Family has investments across various sectors such as home healthcare, restaurants, insurance, consumer goods, FMCG, etc.

Religare is a public limited company listed on the BSE and the National Stock Exchange in India and is a systematically important non-deposit accepting NBFC and a core investment company registered with the Reserve Bank of India. The company is engaged in the business of general insurance, provision of loans to SMEs, housing finance, and retail broking and operates through its subsidiaries and operating entities,.

Fincare-AU merger:  CCI also approved the proposed merger of Fincare Small Finance Bank Limited (Fincare) and AU Small Finance Bank Limited (AU).

The proposal involves the merger of Fincare and AU, with AU as the merged entity. The shareholders of Fincare will be allotted shares in post-merger AU Small Finance Bank.

AU is a banking company which provides personal and commercial banking services (including provision of deposits, loans and advances, debit and credit card services, institutional banking and digital banking services). AU is also licensed to transact business under AD-II bank category (foreign exchange). AU is also engaged in the distribution of insurance and investment products such as mutual funds, and portfolio management services.

Fincare is a banking company and provides deposit services such as savings account, current account, fixed deposits, recurring deposits and lending services, including retail and microfinance loans, and digital banking services. Fincare also provides services such as distribution of insurance products.