Business
New Development, Florida Investor Offers Rs 275/Share for Religare, Challenging Burman Deal – Who Is Digvijay “Danny” Gaekwad?
In a new twist, a Florida-based investor Digvijay (Danny) Gaekwad has made a counter-offer to acquire shares of Religare Enterprises Limited (REL), in the ongoing Burman-Religare deal.
Gaekwad’s offer of ₹275 per share represents a 17% premium over the Burman Group’s open offer price of ₹235 per share. The counter-offer, which targets 26% of REL’s outstanding share capital, arrives just as the Burmans of Dabur prepare to launch their open offer for the Delhi-based financial services firm.
In a letter to SEBI Chairperson Madhabi Puri Buch, Gaekwad criticized the Burman offer, stating –
“We believe the Burmans’ open offer price of ₹235 per equity share grossly undervalues REL and is detrimental to public shareholders. At the time the offer was made on September 25, 2023, it was already at a 15% discount to REL’s prevailing market price of approximately ₹271 per share. Even as of January 22, 2025, the Burmans’ offer price reflects a steep 7% discount.”
Stating his commitment to REL, Gaekwad noted in his January 24 letter –
“I believe REL has a robust business model that will thrive with a stable and committed promoter capable of providing adequate capital and undivided attention. Unlike the Burmans, who have other NBFCs in their group, we can offer our full focus and infuse the necessary capital to drive REL’s growth.”
This unexpected development has added more drama to the acquisition battle for Religare, potentially altering the dynamics of shareholder interest and regulatory considerations.
Who Is Digvijay “Danny” Gaekwad?
Digvijay “Danny” Gaekwad is a first-generation American entrepreneur, philanthropist, and community leader based in Ocala, Florida. He has diverse business ventures, is the Founder-CEO of NDS USA, an IT and Cloud Services company, and Danny G Management, which operates an array of restaurants and hotels.
Interestingly, Gaekwad on his website mentions “Came to America to pursue the American dream” and has also urged the Americans to vote for Trump.
Entrepreneurial Journey
A career spanning over three decades, Mr. Gaekwad has established and scaled more than a dozen businesses across sectors such as hospitality, real estate development, convenience stores, and information technology. His ventures have generated thousands of jobs and contributed hundreds of millions of dollars to the U.S. economy. In recognition of his efforts, Florida Governor Rick Scott awarded him the “One Million Jobs” certificate in 2016 for his significant role in job creation.
Gaekwad’s entrepreneurial journey began in 1987 when he acquired a convenience store in Orlando, Florida. Within eight years, he built and sold a chain of 26 convenience stores. He later founded NDS USA, which grew into the world’s largest medical billing and transcription company within five years. By 1997, he expanded into hospitality and real estate development, acquiring and managing premium hotel brands such as Intercontinental Hotel Group, Carlson Hotel Group, and Hilton Hotel Worldwide.
Real Estate and Development
Gaekwad’s real estate portfolio is extensive, including hotel sites, restaurant properties, golf course lots, and mixed-use developments across Florida and Kentucky.
Born in Baroda, India, Gaekwad hails from a distinguished family—his father was a judge, and his grandfather served as a colonel in the Indian Army. He graduated in Political Science from the prestigious Maharaja Sayajirao University of Baroda before moving to the United States in 1987 after marrying Manisha Gaekwad.
Beyond business, Mr. Gaekwad is an active community leader and a vocal advocate for various causes. His influence extends to political spheres, having encouraged Americans to vote for Donald Trump, as noted on his website.
Board Positions
Over the past three decades, Digvijay “Danny” Gaekwad has held numerous influential positions on the boards of public, private, and nonprofit organizations.
Context of the Religare-Burman Deal
The Religare-Burman deal represents a significant strategic move by the Burman family, the promoters of Dabur India, to increase their stake in Religare Enterprises Limited (REL), a prominent non-banking financial company (NBFC).
Burman Family Stake Expansion
The Burman family, through four entities, currently owns a 25.12% stake in REL. The open offer aims to acquire an additional 26%, equivalent to 9 crore equity shares, to consolidate their control. The deal has secured clearances from major regulators, including the RBI, SEBI, and IRDAI, ensuring compliance with financial and market regulations.
Management Opposition
However, Independent directors, including REL Chairperson Rashmi Saluja, have expressed concerns about the offer price and raised questions regarding the Burman family’s “fit and proper” status. The RBI has required the Burman family to present a comprehensive plan for consolidating their NBFCs as part of the acquisition.
Open Offer Details
The open offer, valued at ₹2,116 crore, is set to run from January 27 to February 7, 2025, with the goal of acquiring shares from public shareholders.
Controversies
The deal has sparked contention, with REL independent directors alleging fraud and regulatory breaches by Burman family entities. Complaints have been filed with SEBI, the RBI, and IRDAI, adding hurdles to the transaction.