The Supreme Court on Friday allowed Florida-based Danny Gaekwad Development and Investments to put its counter open offer to acquire the controlling shares of Religare Enterprises Limited (REL).

The open offer deadline is extended to February 12 from February 7, subject to the US-based company depositing a cash or bank guarantee of ₹600 crore.

The open offer from the Burmans of the Dabur group was due to end on Friday (February 7).

A bench of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar said subjectto the US- based company depositing the earnestmoney, Sebi will consider its application for the counter open offer.

Gaekwad is offering ₹275 against ₹235 by the Burmans, which was made in September 2023.

The top court passed the directions while dealing with an appeal filed by Sapna Govind Rao and certain other shareholders challenging the concurrent findings of a single judge bench and a division bench order of the Delhi High Court which had refused to put on hold the February 7 AGM of REL, pending consideration of the Gaekwad investment.

During the arguments on Friday, the bench briefly observed the amount offered by the Burman’s was made 18 months ago which had to be factored in the present dispute.

The appellants argued before the Supreme Court the Securities and Exchange Board of India (Sebi) should not have rejected Gaekwad’s plea for the counter offerat a higher price on theground of it being a belated offer and time barred.

According to the appellants if Sebi and the shareholders are not allowed to consider the counter offer of Gaekwad, it would result in huge loss to the public shareholders as the latter’s offer is 17 per cent higher than that of the initial offer made by the Burmans.

The apex court found some prima facie substance in the arguments advanced by the appellants and accordingly asked solicitor-general Tushar Mehta appearingfor Sebi to a considered view of the issue by examiningthe application filed by Gaekwad.

Burmans’ Religare Enterprises’ open offer to acquire an additional 26 per cent stake from the open marketcommenced on January 27 following the regulatory approvals.

The open offer is for the acquisition of up to 9,00,42,541 fully paid-up equity shares of face value of ₹10 each, representing 26 per cent of the expanded voting share capital of REL from the public shareholders.