Burmans scale up holding to 20.07% in Eveready via open market purchases

A disclosure to the stock exchanges on Monday showed 88,683 shares translating to 0.12 per cent were bought on April 13 by Burman Group entities

Burman Group entities have bought shares of Eveready Industries India from the open market taking its holding in the company to 20.07 per cent.

A disclosure to the stock exchanges on Monday showed that 88,683 shares translating to 0.12 per cent were bought on April 13 by Burman Group entities — Puran Associates, VIC Enterprises, and M B Finmart. On April 18, the entities bought 76,534 shares or 0.11 per cent taking the total holding of the acquirers and persons acting in concert to 20.07 per cent.   

Sources indicated that the acquisition was in accordance with the purchase order placed by the Burmans earlier.

The Burman Group entities had placed an order with its stock broker, J M Financial services, on February 28, to purchase up to 3,822,000 shares or 5.26 per cent (approximately) of Eveready at a price not more than ~320 per equity share and a total consideration amount not exceeding ~122.30 crore. On April 13, Eveready shares dipped below ~320, and again briefly today, prompting the acquisition of shares. 

The purchase order for the acquisition of shares in Eveready and the intent of the Burman Group to take control had triggered the open offer in February, in line with the Takeover Regulations of the Securities and Exchange Board of India (Sebi), as it could breach the threshold limit of 25 per cent.

The Burman Group’s holding in Eveready then stood at 19.84 per cent, and in compliance with Sebi norms, it announced an open offer for an additional 26 per cent in Eveready. The offer is priced at ~320 per equity share and its opening date is April 26.

The Eveready stock, on Monday, closed at ~320.70 on the BSE. 

On acquiring control, the Burman Group intends to be a “promoter” of Eveready. The Burman family has sought “appropriate” board representation through the appointment of three non-executive directors and wants to appoint a chairman after the open offer and as per Sebi guidelines.

Days after the Burmans announced the open offer, Khaitan family members stepped down from the Eveready board — Amritanshu Khaitan as managing director and Aditya Khaitan as non-executive director and chairman. However, as of December, the holding of the Khaitan family was 4.84 per cent and is part of the “promoter” group.