Private equity firm Kedaara Capital said on Monday it will continue to support the current management at Care Health Insurance, and asserted that it stands by the decisions made by the company’s board.

This stance of Kedaara is significant as it comes on the heels of a controversy around the employee stock option plans (ESOPs) issued to Religare Enterprises Ltd (REL) Executive Chairman Rashmi Saluja.

The Care ESOPs issuance to Saluja has become a thorny issue in the ongoing tussle between the Burman family and the Saluja-led senior management at REL.

The REL board, led by Saluja, has mounted a stiff resistance to the open offer announced by the Burman family that is looking to take control of REL. Saluja is currently a Non-Executive Chairman at Care Health Insurance, an entity in which REL owns about 63 per cent stake.

Kedaara Capital owns 16 per cent stake in CARE Health Insurance, and this stake was acquired in June 2020. This private equity firm currently has no shareholding in REL.

Commenting on Kedaara Capital’s stance on the recent ESOP controversy, its Founder and Managing Partner, Sunish Sharma, said in a statement: “Kedaara is a proud shareholder of Care Health Insurance. Led by a best-in-class management and guided by a strong board, the company has always had the highest standards of governance, compliance and operational excellence. We look forward to continuing to support it as it goes from strength to strength.”