Promoter group Khaitan family's stake in Eveready falls below 10%

Promoter group Khaitan family's stake in Eveready Industries has slipped below 10 percent after IndusInd Bank acquired nearly 8 percent stake by invoking pledged shares of the battery maker, according to stock market data.

Williamson Magor Group, owned by the Khaitan family, is the promoter while the Burman family is the single largest public shareholder in the city-based company with nearly 20 percent stake.

Recently, the Khaitan family had also indicated that they were ready to jointly manage the company, which is listed on stock exchanges.

"We are ready to evaluate options for any additional share purchase. But, we will keep our holding below 25 percent," Mohit Burman told PTI on Sunday.

Burman is a senior member of the Burman family, also the promoters of the Dabur group.

Under Sebi norms, if the stake of an existing shareholder in a listed company goes beyond 25 percent, then that shareholder would be required to make an open offer.

When asked whether the family would be interested in jointly managing the company with the Khaitan family, Burman said it was too early to talk about such a scenario.

At the end of June, the Khaitan family had around 22.16 percent stake in Eveready Industries.

Since then, IL&FS and IndusInd Bank have invoked shares of the company pledged by the Khaitan family. The invoked pledged shares amounts to around 13 percent stake, as per regulatory filings.

Taking into account that the two entities have acquired around 13 percent stake by way of invoking pledged shares, the current holding of the Khaitan family would be about 8-9 percent.

Messages and calls to Eveready promoter and Managing Director Amritanshu Khaitan to seek comments on the promoters' holding falling below 10 percent remained unanswered.

Recently, the Burman family had purchased pledged shares of the company that were invoked by IL&FS.

"The equity shares of Eveready Industries India Ltd held by Williamson Magor were pledged with the bank for securing the outstanding dues of Seajuli Developers & Finance Limited (Seajuli), the borrower company. The bank has invoked the pledge held in aforesaid shares for recovery of its dues from Seajuli," IndusInd Bank said in a regulatory filing on Saturday.

The bank invoked 56,83,320 shares equivalent to 7.82 percent of paid-up equity share capital of Eveready Industries.

Eveready Industries was incorporated in 1934 and was a subsidiary of Union Carbide Corporation, US. The Williamson Magor Group acquired the company in 1993.