'I have made an offer that's hard to refuse': Digvijay 'Danny' Gaekwad

The US-based businessman, who has waded into the Rashmi Saluja-Burman family slugfest over Religare Enterprises, talks about the rationale behind his offer to buy a 55 percent stake in the company

By Rajiv Singh Forbes India Staff

Published: Feb 11, 2025 07:32:41 PM IST

Updated: Feb 11, 2025 07:43:49 PM IST

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Digvijay ‘Danny’ Gaekwad, the US-based businessman

Digvijay ‘Danny’ Gaekwad is a Hollywood buff. The Baroda-born real estate and hospitality entrepreneur from Florida, US, describes the ongoing Rashmi Saluja-Burman tussle for the control of Religare Enterprises Limited (REL) by referring to a Clint Eastwood classic: The Good, the Bad, and the Ugly. The Religare management, he says, has done a fantastic job of reviving the company and making it attractive for shareholders and acquirers. “They are good,” he says. The bitter corporate battle over the last 18 months, he explains, has been “bad”. “What is also bad is the low value of Rs 235 [per share],” he adds. The “ugly” part, he alleges, has been the attempts to tarnish him as a villain and deny him a fair chance to present his case and a counter-offer.

In September 2023, the Burman family—promoters of Dabur India—announced a Rs 2,116-crore open offer to acquire up to a 26 percent stake in financial services company REL at an offer price of Rs 235 per share. The Burmans, via their four entities, already own a 25.12 percent stake in REL. This January, Gaekwad made a counter-offer to buy a 55 percent stake in REL, at Rs 275 a share. Though Sebi rejected Gaekwad’s offer, last Friday the Supreme Court allowed his company Danny Gaekwad Development and Investments to put up its offer, and directed the company to deposit a cash or bank guarantee of Rs 600 crore by February 12.

In a candid interview with Forbes India, Gaekwad asserts he is not a pushover. “I mean business and I have a real deal,” he says. Edited excerpts:

Q. Who is this American Cowboy trying to gatecrash the Burmans’ party?

No, I am not gatecrashing the Burmans’ party. We are value buyers. You can call me a Cowboy or White Knight, but what doesn’t change reality is that we are fighters. This [my acquisition bid] is about making money.

Q. Have you been following the Rashmi Saluja-Burman saga?

I have been watching the drama unfolding over the last 18 months. And this drama had phases: Pause, fight, resumption, and repeat. There had been a stalemate for so many quarters. So, this is the best time to throw my hat in the ring. This is a great time to make money. Betting on Religare’s fantastic story is a money-making opportunity for me. I am not doing charity or helping anybody by offering Rs 275 for a share. This is business and the real deal.

I like the management because they pulled the company out of the crisis. At the end of the day, it was this team that made it happen. This is what might have attracted the Burmans as well. Let’s ask this question: Where were we [both the Burmans and Gaekwad] when the stock price was Rs 17? Did we scramble to buy Religare then? No. It was only after the turnaround that everybody was interested. Now all of us have come to the party. Whether you are early or late it doesn’t matter.

We are a jet generation. The Burmans may have come years ago, but we are a jet generation. We arrived quickly. What the Burmans must understand is one simple thing: You keep the door open, and people will come. Religare’s door was wide open and that’s how we came in. This is about Religare and not the Burmans. One should be fast and quick to seize rather than wait for the stock to fall.

Q. Was it tough to enter the fray at the last moment?

Had it been easy, every idiot would have done it. I love challenges. My offer is simple: Rs 275 is greater than Rs 235. It’s a no-brainer. I could have come with Rs 240 or Rs 250. But that would not have moved the needle. Rs 275 is a reasonable offer. I have made an offer that would be hard for anybody to refuse.

Also read: 'The organisation's interest must come before the promoter's': Harsh Mariwala

Q. An offer hard to refuse. Have you lifted this line from The Godfather?

I love that movie. Don Vito Corleone. What a character!

Q. So, are you playing Godfather in this corporate tussle?

Nope. I told you. We are value buyers. We spotted a good opportunity with enough for everybody to make money. I found the value because this company has done something unprecedented. You tell me a stock that was languishing at Rs 17 and then goes on to touch Rs 300. Amazing and one of a kind. I have not seen such a turnaround. Maybe I am not versed in the Indian market, I but will be happy if somebody corrects me. You won’t find such a phenomenal story even in the American market.

Q. Some allege that you are a front for Rashmi Saluja. What is your take?

You can call me whatever you want. I would love to be a front for her. What’s wrong with that? Why should I be the Burmans’ front? If I am successful, I will get a great management team to be proud of. They would be my allies. I am a friend of every shareholder who wants more value for the stock. I am not an enemy or a villain. Only villains would label me as a villain. I am doing the right thing. How can somebody who is giving more value be bad and the one under-valuing Religare be good? I don’t get this. The drama has been going on for 18 long months. What were the Burmans doing for so long? If I can see value in Rs 275, then why didn’t the Burmans see this? You need to ask them. If I ask, he won’t answer me. I know he would not be happy with me.

Q. Those opposing your counter-offer point to your lack of experience in managing financial businesses.

Are the Burmans God? If they can do it, so can I. I have enough experience in running businesses. I founded Gala Bank in Ocala. So I have enough expertise. I am not a rookie.

Q. Are you depositing Rs 600 crore by February 12?

Of course, I am. Do I have a choice? Either I put up or shut up. I am pushing the envelope to meet the deadline. But I would have loved to have more time to arrange the money. It takes time to complete the requisite formalities of opening an account, KYC, paperwork, and all. But it’s okay. I got a chance. I am grateful to the Supreme Court of India for giving me a chance. Nobody gave me a chance, whether Sebi or RBI or any regulatory body. It’s such a shame that people have to take the last resort of knocking on the doors of the Supreme Court to get justice. Why do things have to come to such a pass? All I wanted was a fair and open chance. Now all I have to do is deposit the money on time. I hope I won’t get late.

Q. So, you are not confident of meeting the deadline. Are you?

I am confident. I am super confident. We have funds, proof of funds, a merchant banker, and all that is needed. But super confidence has its flip side as well. We have seen Sachin Tendulkar getting out by attempting a super confident shot.

Q. Reports suggest you are seeking an appointment with the Prime Minister Modi during his US visit.

Yes. My plea to him would be to look into the system. He is a fantastic man, but if he wants good people to come and invest in India, he must fix the system. It’s still difficult to do business in India.