NEW DELHI: After being at the helm of India’s largest battery and flashlight company for over two decades, the Khaitans are exiting Eveready to make room for the Burmans of FMCG giant Dabur India.
Just two days after the Burmans came up with an open offer for acquiring an additional 26% stake in Eveready Industries for Rs 605 crore, the chairman and managing director of the company tendered their resignations from the board.
Aditya Khaitan and Amritanshu Khaitan have tendered their resignations as Non- Executive Director and Chairman and as Managing Director of the Company, respectively, with effect from March 3, 2022. The Burmans have expressed interest in taking over control and ‘professionalise’ the company.
“The Board at its Meeting held today, has taken the same on record with deep regret and noted and accepted the above resignations, effective the said date and consequent upon the said resignation of the Managing Director,” said Eveready in a regulatory filing
It added, “Suvamoy Saha, Joint Managing Director of the Company, will assume the responsibilities as the Managing Director, till such time the same is taken on record by the Board on the recommendation of the Nomination & Remuneration Committee of the Board, at its meetings to be convened shortly.”
Eveready had been under the control of the Khaitan group for decades after it acquired Union Carbide India (renamed Eveready Industries India) in 1993. However, in recent years, the Kolkata based Group faced multiple headwinds. Its shareholding plunged to just 4.8% from 44.1% over the past two years as the promoter group defaulted on repayments and lenders sold shares of Eveready pledged with them against borrowings.
The Burman group, through various entities had on Monday made a Rs 604.76-crore open offer to acquire around 1.89 crore shares of Eveready Industries, representing 26% of the expanded voting share capital, at a price of Rs 320 per share, payable in cash. Earlier, the Burman group, through its entities held 19.84% stake in the firm.
Open offer for additional 26% stake
The Burman group made a Rs 604.76-cr open offer to acquire around 1.89 cr shares of Eveready, representing 26% of the expanded voting share capital