Burman family, the single largest shareholder of Eveready Industries, has no plans for taking over the company but is open to acquiring additional stake, Mohit Burman has said, amid promoters’ shareholding falling below 10%.

Mr. Mohit Burman is a senior member of the Burman family and Vice-Chairman of Dabur India.

With lenders, including IndusInd Bank, invoking pledged shares in recent weeks, promoter group Khaitan family’s stake in Eveready Industries has fallen below 10%, according to stock market data.

“We are ready to evaluate purchase for any additional shares including from the IndusInd Bank. But, our headroom is about four%. We will keep our holding below 25%,” Dabur India Vice-Chairman Mohit Burman told PTI from Greece on August 9.

He also indicated that the family does not have plans for any hostile management takeover bid.

The Burman family has around 20% stake in the company, which is listed on the BSE and the NSE.

Under SEBI norms, if the stake of an existing shareholder in a listed company reaches 25%, then that shareholder would be required to make an open offer.

Recently, the Khaitan family had indicated that they were ready to jointly manage Eveready Industries.

When asked whether the family would be interested in jointly managing the company with the Khaitan family, Mr. Burman said it was too early to talk about such a scenario.

At the end of March 2019, the Khaitan family had about 44% stake in the company and that came down to 22.16% as on June 30, 2020, according to the stock market data.

Since then, IL&FS and IndusInd Bank have invoked shares of the company pledged by the Khaitan family. The invoked pledged shares amounted to around 13% stake, as per regulatory filings.

Taking into account that the two entities have acquired around 13% stake by way of invoking pledged shares, the current holding of the Khaitan family would be around 8 to 9%.

Messages and calls to Eveready promoter and Managing Director Amritanshu Khaitan to seek comments on the promoters’ holding falling below 10% remained unanswered.

Recently, the Burman family had purchased pledged shares of the company that were invoked by IL&FS.

“The equity shares of Eveready Industries India Ltd held by Williamson Magor were pledged with the bank for securing the outstanding dues of Seajuli Developers & Finance Limited [Seajuli], the borrower company. The bank has invoked the pledge held in aforesaid shares for recovery of its dues from Seajuli,” IndusInd Bank said in a regulatory filing on Saturday.

The bank invoked 56,83,320 shares equivalent to 7.82% of paid-up equity share capital of Eveready Industries.

Eveready Industries was incorporated in 1934 and was a subsidiary of Union Carbide Corporation, U.S. The Williamson Magor Group acquired the company in 1993.

Shares of Eveready Industries rose over 4% to ₹152.50 in afternoon trade on the BSE on August 10.

You have reached your limit for free articles this month.

To get full access, please subscribe.

Already have an account ? Sign in

Show Less Plan

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Faster pages

Move smoothly between articles as our pages load instantly.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Dashboard

A one-stop-shop for seeing the latest updates, and managing your preferences.

Personalised recommendations

A select list of articles that match your interests and tastes.

Briefing

We brief you on the latest and most important developments, three times a day.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here