No plan for hostile takeover of Eveready: Mohit Burman

The 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 the promoters' shareholding falling below 10 per cent.

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 per cent, 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 per cent. We will keep our holding below 25 per cent," Dabur India Vice Chairman Mohit Burman told PTI from Greece on Sunday.

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

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

Under Sebi norms, if the stake of an existing shareholder in a listed company reaches 25 per cent, 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, Burman said it was too early to talk about such a scenario.

At the end of March 2019, the Khaitan family had about 44 per cent stake in the company and that came down to 22.16 per cent 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 per cent stake, as per regulatory filings.

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

Messages and calls to Eveready promoter and Managing Director Amritanshu Khaitan to seek comments on the promoters' holding falling below 10 per cent 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 per cent of paid-up equity share capital of Eveready Industries.

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