Burmans make open offer for Eveready

KOLKATA: The Burmans of Dabur have finally decided to take control of dry cell battery leader Eveready Industries of Williamson Magor Group by coming out with an open offer on Monday.
Five Burman family-run investment firms came out with the open offer for an additional 26% stake in Eveready for Rs 605 crore. The offer price is Rs 320 per share. The Burmans have appointed JM Financial for managing the issue.According to the filing by JM Financial, the Burmans came out with an open offer despite the fact that their shareholding was less than 25% (currently 19.8%) because they intended to buy another 5.2% in Eveready and placed an order on February 28.

It is learnt that following the open offer, the Burman family would seek three board seats and would want to appoint a chairman in the company. Aditya Khaitan is the non-executive chairman of Eveready, which is present in flashlights and consumer durables along with battery manufacturing.
The Delhi-based group has been acquiring shares of Eveready since 2020. According to basic calculations, if the offer becomes successful and all shares are tendered, then the holding of Burmans would cross the 50% mark and touch 51%. When contacted, Mohit Burman said, “We have been monitoring the situation of the company and felt that it is an appropriate time to step in now. The company needs direction, and the brand has immense potential. We feel we will be able to add value and take this business to the next level.”
However, Khaitans could not be contacted for comment. Amritanshu Khaitan is the MD of the company.
“Given the intent of the acquirers and PACs to acquire control of the target company and pursuant to above mentioned proposal to place the purchase order for the acquisition of equity shares, the combined shareholding and voting rights of the acquirers and PACs in the target company may exceed 25% of the expanded voting share capital. The acquirers placed orders with their stockbroker JM Financial Services on February 28, 2022,” the JM Financial filing added.
Burmans placed an order for more than 38 lakh shares for a little over Rs 122 crore. This 5.2% stake would make its (Burman) holding pass 25%. Incidentally, the price of Eveready was hovering at Rs 370-376 at the bourses on Monday. Burman investment firms that came out with the offer include Puran Associates, VIC Enterprises, M B Finmart (acquirer 3), Gyan Enterprises, and Chowdry Associates. On March 2019, the Khaitans had about 44% stake in the firm and that dipped to 22.1% in June 2020. Currently, the family has a 4.8% stake in the company.
Since then, IL&FS and IndusInd Bank have invoked shares of the firm pledged by the Khaitans and sold in the market. Burmans bought most of the shares. Burmans had earlier said that they are ready to evaluate a purchase for any additional shares, including the ones from the IndusInd Bank. But its headroom is about 4%.