The Burman family, the promoters of Dabur, on Tuesday acquired around an 8.48% additional equity stake in battery major Eveready Industries from the open market operations, taking its holding in the company to 19.84%.
Significantly, the Khaitans, promoters of Eveready, a Williamson Magor group company, held a 22.99% equity stake at the end of the last fiscal, which was down from 30.83% at the end of the second quarter
The battery maker’s scrip surged 9.96% to end the day at Rs 88.90 on the BSE after reports that Dabur promoters have purchased 61,67,786 equity shares of the company. Dabur India vice-chairman Mohit Burman said, “This is a portfolio investment by the Burman family. It’s a personal investment and is not connected with Dabur India.”
Dabur’s scrip fell 1.09% to end the day at Rs 479.10 on the BSE.
Informing the stock exchanges about the open market operations, Guardian Advisers said it, on behalf of
its clients, has acquired further shares in Eveready, the country’s largest dry-cell battery maker.
Eveready Industries had earlier mandated Kotak Mahindra Bank to scout for potential financial or strategic investors. The strategic sale was reportedly intended to deleverage promoter group holding in the company.
Facing cash flow constraints due to the lockdown, the company last month said it was in discussions with its lenders in relation to infusion of additional funds to bridge the working capital gap to ensure no impact on its operations.
The company also approached all term lenders to extend the moratorium as per RBI’s Covid-19 regulatory package in relation to repayment of instalments falling due during the period of March to August.