Eveready Batteries' Chairman, MD resign post open offer from Burman group

Eveready Industries India Ltd said its Non-Executive Chairman Aditya Khaitan and Managing Director Amritanshu Khaitan have resigned following an open offer from the Burman group.

Batteries and flashlights maker Eveready Industries India Ltd on Thursday said its Non-Executive Chairman Aditya Khaitan and Managing Director Amritanshu Khaitan have resigned following an open offer from the Burman group.

The Burman group, through various entities had on Monday made a Rs 604.76-crore open offer to acquire around 1.89 crore shares of Eveready Industries, representing 26 per cent of the expanded voting share capital, at a price of Rs 320 per share, payable in cash.

In a regulatory filing, Eveready Industries India said,"...Aditya Khaitan and Amritanshu Khaitan have tendered their resignations from the Board, as Non-Executive Director and Chairman and as Managing Director of the company, respectively, w.e.f. March 3, 2022, in view of the above expression of interest, to enable the company to benefit from new leadership and direction."

Stating that their resignations have been accepted, the company said its board has asked Suvamoy Saha, Joint Managing Director of Eveready Industries India, to assume the responsibilities as the Managing Director in the interim period.

Earlier, the Burman group, through its entities -- Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, MB Finmart Pvt Ltd, Gyan Enterprises Ltd and Chowdry Associates -- held 19.84 per cent stake in Eveready Industries.

On Monday, the group bought a further 38.22 lakh shares aggregating 5.26 per cent stake in Eveready Industries, through its stock broker JM Financial Services, thereby triggering the open offer for an additional 26 per cent stake under Sebi norms.

In a letter to the board of the Kolkata-based company, the Burman group had made clear their intention to acquire control, given their significant shareholding in the company, while seeking three non-executive directors to the board of Eveready Industries.

"...we firmly believe in the business prospects of Eveready and are supportive of its growth going forward. We are confident that such directors will significantly contribute towards several strategic initiatives of Eveready," the letter had said.

Such representation on the board, the Burman group said, would also "augment shareholder value creation and assist the senior management of Eveready to gain market share and enhance the growth prospects of the business.