The New Delhi-based financial services firm Religare has said that the remuneration, including salary and employee stock options (ESOP), was ₹42.06 crore for the financial year ending March 2023.

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This was in response to an allegation by incoming promoters, the Burman family that owns Dabur, that Saluja's annual compensation was more than ₹150 crore. "The allegation that the Exec Chairperson draws a remuneration of more than ₹150 crore per annum is completely false and erroneous," the spokesperson told CNBC-TV18

The compensation was approved via special resolution passed by the shareholders, Religare added.

The statement on November 14 has come in response to a complaint filed by the Burmans with the Securities and Exchange Board of India (SEBI).

Here's the latest update in the battle between the existing management of Religare Enterprises and the Burman family, which plans to take over the company.

At a meeting on September 20, the Burman family, the promoters of Dabur, revealed their plan to make an open offer for a controlling stake in Religare. This has not been refuted by the company.

Burmans — with a net worth of $8.9 billion, according to Forbes — held a 20.15% stake in Religare. They bought an additional 5% stake from the market, which would take their stake beyond a threshold where an open offer becomes mandatory.

The open offer would involve total consideration of ₹ 2116 crore (assuming full acceptance).

According to the Burmans, Religare Chairman Rashmi Saluja sold shares in the company soon after the suitors revealed the plan for an open offer on September 20. The suitors sought a probe into the share sale by Saluja by SEBI.

According to a statement shared by the Religare spokesperson, Saluja sold the shares that got under the employee stock option plan (ESOP).

This sale of shares by Saluja had requisite approvals months before the transaction. “The process involves financing from external lenders as well as approvals for pledging financing or revocation and eventual sale. In the said allegation, the entire process started months before the eventual sale of ESOPS on September 21, 2023,” the spokesperson said.

An earlier version of the article pegged the cost of the open offer at Rs 3,400 crore for the Burmans. It has been corrected to Rs 2,116 crore, after a clarification.

Also Read: Religare initiates IPO process for its health insurance subsidiary 'Care Health Insurance'

First Published:Nov 14, 2023 11:10 AM IST