Eveready Industries’ shares slip 7% after Burman family makes open offer to acquire 26% stake in company

Battery maker Eveready Industries' shares declined 7 per cent on Wednesday to touch day’s low of Rs 350 per share on the BSE in the intraday trade after the Burman family announced an open offer for acquiring 26 per cent stake in company on Monday, February 28, 2022. 

Burman family is also the promoters of Dabur India. 

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As per the Eveready’s filing to exchanges, the open offer is priced at Rs 320 per share aggregating to a total consideration of up to Rs 605 crore.  

The Burman Group, in a letter to Eveready’s board, said that it intends to acquire control and requested appropriate representation on the board through appointing three directors, each of whom would be a non-executive director. 

The promoters of Dabur also mentioned that it had placed an order with its stockbroker, JM Financial Services on February 28 to purchase up to 3.82 million shares or approximately 5.26 per cent holding in Eveready, triggering the open offer. 

At around 11:50 pm, the stock is trading down almost 6 per cent to Rs 353.85 per share on the BSE as compared to 1.6 per cent fall in the S&P BSE Sensex. Amid strong performance expectations in the next fiscal 2022-23, the counter in the last 15 sessions has gained around 37 per cent on the BSE. 

The company, while announcing December quarter (Q3FY22) results on February 4, 2022, said the battery category will revert to its earlier level of profitability now that all adverse costs have been passed on.  

"The company is expected to turn in stronger performance within a short period of time. However, these benefits may not quite accrue within Quarter 4 and the performance during the quarter is likely to be subdued prior to transition to a stronger next fiscal," Eveready Industries said in an outlook.