The Burman family, promoters of Dabur India, has reclassified itself as the promoters of dry cell battery maker Eveready Industries, replacing the Khaitans.
The Burman family becomes the promoters of the Kolkata-based company after Puran Associates, VIC Enterprises, MB Finmart, together with Gyan Enterprises and Chowdry Associates — all investment arms of the family — became promoters following the completion of the open offer in June. The Burmans now have a 38.38% stake in Eveready, having acquired over 14% shares in the open offer.
“Pursuant to the open offer, Puran Associates, VIC Enterprises, MB Finmart, Gyan Enterprises and Chowdry Associates have become the promoters of the target company (Eveready Industries India) in accordance with the provisions of Sebi (LODR) Regulations,” a stock exchange filing said on Monday.
Sources told FE the Burman family’s nominees will be joining the company’s board within one week.
Aditya Khaitan and Amritanshu Khaitan had resigned from the board in March after the Burmans launched the open offer to acquire full control of the company. Aditya was the non-executive chairman, while Amritanshu was the managing director. Suvamoy Saha, who was then the joint managing director, assumed charge as managing director.
Saha, addressing the shareholders at the company’s AGM on June 29, said while the operating results were “somewhat disappointing” during the last fiscal, the company was now on a journey towards the “higher reaches” and was in the “midst of a transformation”. “The fundamental strengths of the businesses remain intact — solid brand, strong distribution reach and significantly high market share in the core categories of batteries and flashlights. The management of the company is now purely focused on harnessing these strengths for delivery of results,” he said.
The Khaitans’ shareholding in Eveready fell below 5% after banks and financial institutions continued to invoke and sell pledged shares to recover their dues from Williamson Magor group companies. Eveready was earlier owned by the erstwhile Union Carbide India. Khaitans fought a bitter battle with Nusli Wadia’s Bombay Dyeing to acquire it in 1993.