homebusiness Newscompanies NewsBurman family to take control of Eveready as Khaitans quit board post open offer
Burman family to take control of Eveready as Khaitans quit board post open offer
Eveready Industries India's Non Executive Chairman Aditya Khaitan and Managing Director Amritanshu Khaitan on Thursday resigned following an open offer from the Burman group.
The Burman family have taken control of batteries and flashlights maker Eveready Industries India Ltd as the Khaitan family, which was in control of the company for two decades, stepped down from the board. Khaitans' holdings had fallen from 44 percent to 5 percent in two years after the default.
“…Aditya Khaitan and Amritanshu Khaitan have tendered their resignations from the Board, as Non-Executive Director and Chairman and as Managing Director of the company, respectively, w.e.f. March 3, 2022, in view of the above expression of interest, to enable the company to benefit from new leadership and direction," Eveready said in a regulatory filing.
Stating that their resignations have been accepted, the company said its board has asked Suvamoy Saha, Joint Managing Director of Eveready Industries India, to assume the responsibilities as the Managing Director in the interim period.
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Earlier, the Burman group, through its entities -- Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, MB Finmart Pvt Ltd, Gyan Enterprises Ltd and Chowdry Associates -- held a 19.84 percent stake in Eveready Industries. On Monday, the group bought a further 38.22 lakh shares aggregating to a 5.26 percent stake, through its stock broker JM Financial Services, thereby triggering the open offer for an additional 26 percent stake under Sebi norms.
Eveready was struggling with high debt for the last few years and has been trying to monetise some of its assets. Recently, the battery maker has also hived off its loss-making tea operations and sold its surplus land in Chennai and Hyderabad to reduce debt.
In a letter to the board of the Kolkata-based company, the Burman group had made clear their intention to acquire control, given their significant shareholding in the company, while seeking three non-executive directors to the board of Eveready Industries. "...we firmly believe in the business prospects of Eveready and are supportive of its growth going forward. We are confident that such directors will significantly contribute towards several strategic initiatives of Eveready," the letter had said.
Such representation on the board, the Burman group said, would also "augment shareholder value creation and assist the senior management of Eveready to gain market share and enhance the growth prospects of the business".
“We have been shareholders in Eveready for over two and a half years, and we felt that the company now needs new direction. We felt that this is the opportune time to step in and provide that direction,” Mohit Burman had told Moneycontrol.com.
“The brand has immense potential and we feel we will be able to add value and take this business to the next level,” he added.
Eveready Industries India's share price ended 2.20 percent higher on Thursday at close, quoting at Rs 357 apiece.
(With inputs from PTI)
(Edited by : Priyanka Deshpande)
First Published: Mar 3, 2022 5:20 PM IST
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