On Wednesday, the Burman family of the Dabur group has picked 9.9 per Cent stake in the company. Soon after this, the Religare Enterprises rallied nearly 5 per cent in morning trade on 25 April.
Religare was trading 4.81 per cent up at Rs 58.85 at around 11 am. At around the same time, the benchmark Sensex slipped 67 points, or 0.19 per cent, at 34,549.
The Dabur group did it through conversion of warrants that were issued to three of their companies last week after they committed to invest Rs 150 crore.
As the private equity firm Bay Capital was involved in the company, the two industrialists Anand C Burman and Mohit Burman acquired stake in Religare. The Burmans altogether hold 28.7 million shares in Religare after they converted 28.6 million warrants issued to three family investment vehicles Puran Associates Pvt, Milky Investment and Trading Company and MB Finmart Pvt. MB Finmart already held 20,000 shares in Religare before this.
It is being assumed that the total of 111.5 million warrants issued by Religare on April 19 are converted into shares, this would raise the Burmans’ shareholding in the firm to 9.9 per cent, from around 0.01 per cent before.