Promoter status in Eveready hinges on completion of 'open offer': Burmans

The promoter status for Burman family in Eveready Industries, in which it is vying to acquire an additional 26 per cent stake through a Rs 607-crore open offer, hinges on the nod by SEBI

The promoter status for the Burman family in Eveready Industries, in which it is vying to acquire an additional 26 per cent stake through a Rs 607-crore open offer, hinges on the nod by market regulator SEBI, which is yet to give its approval to the proposal, an official said on Sunday.

Burman Group of entities announced the "intent" to take control of Eveready on February 28 and proposed the open offer.

Waiting for the regulator's approval (for the open offer). Only after the open offer completion, we will become promoters, Dabur Group director Mohit Burman told PTI.

Ideally, SEBI approval comes in a month. I don't foresee any hurdle in getting the open offer nod based on whatever we have come to know from press reports so far, said Amitava Kothari, a noted chartered accountant who is on boards of various listed companies.

Another senior chartered accountant K G Somani said that the shareholding below 25 per cent does not prevent them from making an open offer.

The Khaitans, who have around a five per cent stake in the company, are still the promoter of the entity but they stepped down from the board after the Burmans announced their intent.

We are not exiting the company and waiting for the open offer to get completed, said Amritanshu Khaitan who was the managing director before he stepped down.

The battery and flashlights maker reported a consolidated net loss of Rs 38.41 crore in the fourth quarter of the last fiscal.