Everready Industries: There is an atmosphere of happiness in the market due to the discussions about the changes taking place regarding the Williamson Magor Group company Eveready Industries. On February 28, a day before Dabur’s promoter and the company’s largest shareholder Burman family announced an open offer, there was a strong rally in the stock of the battery company’s dry cell battery company. Mohit Burman, Vice Chairman, Dabur India said that the brand has a good reach and he expects its sales to increase. He said that he plans to launch the brand in his new vertical. Burman said these things in a conversation with Moneycontrol.
Burman family has brought open offer
The Burman family, the promoters of Dabur India, said in a stock exchange filing on February 28 that it has placed an open offer for acquisition of 26 per cent stake in Eveready. At present, the control of Eveready is with Khaitan Group.
The Burman family has proposed to buy an additional 26 per cent stake for Rs 604.76 crore. Let us tell you that to recover the dues of other debt-ridden companies by the lenders, the shares of Khaitan’s company were sold. According to the annual report, Eveready had a debt of Rs 418 crore till FY21.
Burman family put open offer for acquisition of 26% stake in Eveready, know full details
This open offer is a mandatory open offer under the Take Over Rules. The Burman family had proposed to buy an additional 5.26 per cent stake in Eveready Industries with an investment of Rs 122.30 crore, taking their total stake in Eveready Industries to 25.11 per cent. The open offer price is Rs 320 per share.
Burman’s plan to run the company professionally
Mohit Burman said, “He has a plan to clean up the company and run it in a professional manner like we run any other business. Fortunately, this company does not have much debt.”
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When asked about the reason for making a big bet on Eveready, Burman said, “We have been a shareholder for more than two and a half years and we felt that the company needs the right direction now.” He said, “We felt it was a good time to give direction. The good thing is that despite the group’s financial issues, it has a sound financial position. We see good future for the company.”
just want to take control of the company
Asked whether this open offer is an attempt by Eveready Batteries to hostile takeover by a third party, Burman said that our intention is only to take control of the company. “This brand has immense potential and we feel that we will be able to add value to it and take this business to the next level,” he added.
On the possibility of a change in the company’s board, Burman said that he plans to change the board once the offer is completed. We are demanding three seats on the board and we will appoint a chairman.
When is it necessary to bring an open offer
As per Sebi norms, an open offer has to be made if the stake of the acquiring company can exceed 25 per cent. 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.
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