Burmans' promoter status in Eveready Industries hinges on completion of 'open offer'

The promoter status for the Burman family in Eveready Industries, in which it is vying to acquire an additional 26 per cent stake through a Rs 607-crore open offer, hinges on the nod by market regulator SEBI, which is yet to give its approval to the proposal, an official said on Sunday.

The Burman Group of entities had on February 28 announced the "intent" to take control of Eveready and proposed the open offer.

On the day of the announcement, the Burmans had a 19.8 per cent stake in the entity.

They had given a mandate to JM Financial Services, the offer manager, to buy shares for an additional 5.26 per cent stake in Eveready from the market at a price not more than Rs 320 a piece, which is equal to the open offer price.

The mandate was given in addition to the open offer to acquire the additional 26 per cent stake.

With the Eveready stock slipping below Rs 320 a piece for over a week, the Burmans were able to acquire an additional stake of around 3.5 per cent, which raised their holding to about 23.25 per cent as per the latest data.

Waiting for the regulator's approval (for the open offer). Only after the open offer completion, we will become promoters, Dabur Group director Mohit Burman told PTI.

Ideally, SEBI approval comes in a month. Based on whatever we have come to know from press reports so far, I don't foresee any hurdle in getting the open offer nod,? said Amitava Kothari, a noted chartered accountant who is on boards of various listed companies.

Another senior chartered accountant K G Somani said that the shareholding below 25 per cent does not prevent them from making an open offer.

The Khaitans, who have around a five per cent stake in the company, are still the promoters of the entity but they stepped down from the board after the Burmans announced their intent.

We are not exiting the company and waiting for the open offer to get completed,? said Amritanshu Khaitan who was the managing director before he stepped down.

The battery and flashlights maker reported a consolidated net loss of Rs 38.41 crore in the fourth quarter of the last fiscal.