Indian American investor Digvijay “Danny” Gaekwad is appealing to US lawmakers and the White House to get a “fair deal” on his counteroffer to Indian billionaire Burman family’s offer to acquire a 26% stake in India’s Religare Enterprises Ltd.
Florida based Gaekwad says he plans to do so as the Delhi High Court on Feb. 4 allowed the Burman family’s open offer to proceed even as it asked Indian market regulator Securities and Exchange Board (SEBI) to expedite its decision on Gaekwad’s application for investment.
Gaekwad fears he would be left with a fait accompli as the court allowed the Burman family’s offer to proceed despite appeals for a stay ahead of the Indian financial services company’s annual general meeting (AGM), scheduled for Feb. 7.
The High Court’s Feb. 4 order came in response to Bangkok-based minority investor Sapna Govind Rao’s appeal against Justice Manoj Jain’s Jan. 30 order refusing to halt the Burman family’s open offer pending completion of fair assessment and stay the AGM.
“I have no choice left but to place my case before U.S. lawmakers to get fair and equitable treatment from Indian authorities,” Gaekwad told the American Bazaar over the phone. “I would also like to raise these questions to Prime Minister Narendra Modi durning his upcoming visit to the US as to how and why U.S. investors are treated in such a fashion in India.”
Gaekwad, a major Republican donor, said he planned to meet Secretary of State Marco Rubio, who represented Florida in the Senate before his elevation, and Florida Senator Rick Scott among others besides key staffers of President Donald Trump.
The Burman family, which has founded and controls consumer goods conglomerate Dabur India, raised its stake in Religare to nearly 25% in September 2023, triggering a so-called open offer to buy more shares.
In a stock exchange disclosure, Religare shared a Jan. 24 letter from Gaekwad’s firm — Danny Gaekwad Developments & Investments Florida — requesting permission from SEBI to make an open offer of 275 ($3.15) rupees per share for the Indian company, a 17% premium to the Burmans’ offer of Rs 235 ($2.69). The payment will be in cash, and the tendering period will align with the Burmans’ schedule.
Asserting that Religare is undervalued, Gaekwad’s letter criticizes Burmans’ offer for lacking clarity on Reserve Bank of India (RBI) mandated conditions, such as consolidating non-banking financial companies (NBFCs) within the Burman and Religare groups. Burmans have also not disclosed the impact of the consolidation plan on shareholders, it says.
Gaekwad claims the Burmans’ offer price is 7% lower than Religare’s closing price on Jan. 22, 2025, and 15% below the market price when the offer was announced in September 2023. Burmans’ offer letter of Jan 18, 2025, also misleads public shareholders by implying unconditional RBI approval, despite it being contingent on consolidation requirements, it alleges.
In his letter, Gaekwad asserts his group’s ability to provide focused attention and capital infusion, as it does not own competing NBFCs. He also requests SEBI to hold the tendering period for the Burmans’ offer in abeyance, enabling public shareholders to evaluate both offers simultaneously.
The letter requests exemptions under SEBI’s takeover regulations to allow this counteroffer, citing the larger interest of Religare’s public shareholders. Gaekwad’s proposed price of Rs. 275 ($3.15), a 24% premium to Religare’s 60-day volume-weighted average price of Rs. 221 ($2.53) as of Sep. 22, 2023, aims to provide a fair exit opportunity for shareholders.
Gaekwad shot off the letter after SEBI’s nod for Burmans’ open offer on Dec. 20, 2024. He plans to issue a public announcement under SEBI regulations within seven days of receiving approval to proceed with his competing offer.