Chairman and Non-Executive Director Aditya Khaitan and MD Amritanshu Khaitan of Eveready Industries India Ltd. have resigned from their positions in the company two days after the Burman family made an offer to take over the company. The Khaitans have exited to make room for the Burmans, who manage the FMCG giant Dabur India.
The Burmans made an offer to but an additional 26% stake in the company for Rs 604.76 crores. Eveready is presently the largest producer of dry cell batteries in India and a market leader in this segment and has been in control of the Khaitans for decades. However, the company has been in serious trouble as it could not repay its lenders and creditors. The stakeholding of the promoters has fallen from 44.1% to 4.8% in a span of two years.
The lenders and creditors sold all the shares that had been pledged against the loans. The company is under serious trouble but the Burmans have expressed interest in the management of the company as they wish to take over and ‘professionalize’ the company. According to analysts, the Burmans possess the cash flow to repay the company’s debts and turn it around. The offer is not a satisfactory one as the Burmans have expressed an interest to buy stocks at a discounted price of Rs 320 instead of the current market price of nearly Rs 357.
Suvamoy Saha, Joint MD of the company shall assume the responsibility of MD until further nominations are made.
Highlight by Aman Agarwal.