Eveready Industries: A fresh guard
Shares of Eveready Industries surged after media reports emerged that the Burman family may become joint promoters of the company along with the Khaitan family.
The shareholding of the Khaitan family plunged to just 4.5% from 44.1% over the past two years as lenders sold shares of Eveready pledged with them after the promoter group defaulted on payments.
The promoter group pledged their holdings in Eveready and tea producer McLeod Russel India Ltd to avail of loans and repay debts of McNally Bharat Engineering.
Last August, Eveready’s shares, held by Williamson Magor (an Eveready promoter entity), were pledged with IndusInd Bank for securing the outstanding dues of Seajuli Developers and Finance Ltd, the borrower company. The bank invoked the pledge held in the Eveready shares for the recovery of its dues from Seajuli.
The dramatic decline in the promoter holdings in Eveready opened the dry-cell battery maker to the risk of a hostile takeover. As lenders invoked pledges, the Burman family, which runs Dabur Ltd, stepped in as a white knight to buy out the shares from the open market to avert such a possibility.
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