The Burman family, the promoters of Dabur India, has informed the stock exchange on February 28 that it has placed an open offer for acquisition of 26 per cent stake in Eveready. It is worth mentioning that at present the control of Eveready is with Khaitan Group.
This open offer is a mandatory open offer under the Take Over Rules. Let us inform that the Burman family has bought an additional 5.26 percent stake in Eveready Industries with an investment of Rs 122.30 crore. Due to which his total stake in Eveready Industries has gone up to 25.11 percent. The Burman family has also become the single largest investor in Eveready Industrie.
According to SEBI rules, if the stake of the acquiring company can exceed 25 per cent, then an open offer has to be made. If such an open offer is triggered, the acquiring company has to place an offer to buy at least 26 per cent additional shares from the public shareholders and the offer is placed at near market price. After this additional 5.26 per cent stake, the Burman family will have to make an open offer of Rs 604.76 crore to buy an additional 1.89 crore shares or 26 per cent stake. Under this, the Burman family will buy these shares at a price of Rs 320 per share.
This acquisition by the Burman family in Eveready will be done through Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, MB Finmart Pvt Ltd, Gyan Enterprises Pvt Ltd and Chowdry Associates. All these companies are owned by members of Burman family. JM Financial Ltd has been appointed as the Lead Manager for this offer.
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As per the December quarter shareholding pattern, Puran Associates Pvt Ltd held 5.24 per cent, VIC Enterprises Pvt Ltd 4.95 per cent, MB Finmart Pvt Ltd 6.2 per cent, Gyan Enterprises Pvt Ltd 1.95 per cent, Gladiator Vyapaar Pvt Ltd 3.11 per cent and Chowdry Associates owns has a 1.51 percent stake.
Significantly, during the last two years, the Khaitan family’s stake in Eveready has come down from 44.1 per cent to 4.84 per cent. Let us tell you that after the promoter group defaulted in payment, the lenders have sold the pledged shares held with them, due to which the Khaitan family’s stake in the company has seen such a sharp decline. The promoter had pledged these shares to take the loan and repay the loan.
For the past few years, Eveready has been facing the problem of huge debt and to deal with this problem, it is trying to sell some of its properties. Recently, the battery maker has sold its loss-making tea business as well as some of its land in Chennai and Hyderabad and used the proceeds to reduce debt.
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