Burmans Acquire 14.3% Stake in Eveready Industries

The Burmans, promoters of Dabur India, acquired a 14.3 percent stake in Eveready Industries India, the country's largest dry cell battery maker, in a public bid that ended on Thursday. As a result, Burman's stake in the company will be 38.3%. Mohit Burman, who led the family's investment in Eveready, said the tender offer was completed.

In February, Burmans announced its intention to control the company by obliging JM Financial Services to acquire 5.26% of Eveready at a price of less than Rs 320 per share, which is the same as the tender offer price.

The purchase order and Burmans' decision, combined, could exceed the 25% threshold, triggering an additional 26% tender offer under the Securities and Exchange Board of India (Sebi) acquisition rules. At that time, Burman's stake in Eveready was 19.84%.

Completion of the public offering aims to pave the way for the next step at Eveready. At the time of the tender offer, the Burman Group stated that it intends to proceed with the acquisition of control of Eveready.

Khaitans, who acquired Eveready in 1993 and defeated Wadias of Bombay Dyeing, are the current promoters of Eveready. However, their control over the company has fallen over the past two years, and ownership has dropped to 4.90% by March 2022.