Burmans of Dabur raise Eveready pie to 20%

Kolkata: The holding of Burmans of

Dabur

has touched 20% mark in

Eveready

Industries following a fresh acquisition of 8.4% in the dry cell battery leader. This has assumed significance because Khaitans’ stake in the company has been reduced to 23% in the last two years from over 40% in 2018.

When contacted, the vice chairman of Dabur India,

Mohit Burman

, said that it is a portfolio investment by Burman family. “It is a personal investment and is not connected with Dabur India,” he added.

The holding of Burmans had touched 11.05% in March this year just before the lockdown. Eveready stock was up by 9.9% to Rs 88.90 apiece on Tuesday on the bourses following the news of Burmans’ stake rise in the company.

Amritangshu Khaitam, managing director of Eveready, cannot be contacted for comment.

But sources close to the development said that the

Khaitan

family may not be averse to the idea of having a long-term partnership with the Burman family as far as Eveready is concerned. “The promoters of Eveready may not be against a board berth for the Burman family if the Dabur owners asked for one as their holdings have now crossed the 15% mark. They (Burmans) must be seeing great value in it,” added the sources.

It is also learnt that in the long run, it may open up an opportunity for the Khaitans to build a partnership with the Burman family. “Both have knowledge and interest in FMCG. Burmans, too, had earlier invested in stressed assets like Raligare,” the sources argued.

In the recent past, the group had acquired over 14% stake in Punjab Tractors and was instrumental in the acquisition of Balsara’s home and hygiene business by Dabur India.

Eveready Industries, the country’s largest dry-cell battery maker, had earlier mandated Kotak Mahindra Bank to scout for potential financial or strategic investors. The strategic sale was intended to de-leverage promoter group holding, which was 44% at that point of time in late 2018.

Portfolio management firm Guardian Advisers, owned by Arjun Lamba and others, which manages investments for the Burmans, has been cornering shares of Eveready for the last couple of months on behalf of MB Finmar, Puran Associates, UIC Enterprises, Gyan Enterprise and Chowdry Associates.

All the investment firms on whose behalf it is buying shares of Eveready belong to the Burman family and Mohit Burman along with other family members, who are also on the board of these investment firms.


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