INSUBCONTINENT EXCLUSIVE:
largest dry cell batter maker
The transactions have been initiated through Guardian Advisors.
Owned by Arjun Lamba and others, portfolio management firm Guardian Advisors
(GA) manages the investment for the Burmans, besides others
The portfolio management firm has been steadily buying shares of the Khaitan-family controlled Eveready Industries over the last few months
It picked up a 5.9 per cent stake till last month, and on Friday, announced a further increase in stake by another 3.4 per cent .
Those in
know of the deal including Eveready Industries insiders claim the stake pick-up has been on behalf of the Burman family.
In a regulatory
filing with the BSE, Guardian Advisors the fresh acquisition of 24,29,068 shares accounting for 3.34 per cent of the total equity capital
was bought through open market purchases on March 5 and March 6
Guardian Advisors further said, its investment in Eveready are on behalf of its clients.
"GA and persons acting in concert has acquired
further shares in the company (Eveready Industries) and now holds 9.26 per cent equity stake in Eveready Industries India under various
to the BSE today.
The companies on behalf of which acquisitions were made in Eveready Industries include MB Finmart Pvt Ltd, Puran
Associates Pvt Ltd, VIC Enterprises Pvt Ltd and Chowdry Associates
The Burman family members are there on the boards of all these companies, a search on the ROC reveals.
Eveready Industries is part of the
Williamson Magor Group, which also owns McLeod Russel and McNally Bharat Engineering.
After selling its loss-making tea business to Madhu
Jayanti International last year, Eveready Industries, which has over 50 per cent market share of the country's battery market, has been
focusing on its core business, besides focussing on other verticals like flashlights, luminaries, and appliances.
During the third-quarter
(Q3) of the current financial year 2019-20, Eveready Industries posted a 16 per cent drop in its operating income at Rs 317.42 crore
The company's EBIDTA margin for the core battery business stood at 22.7 per cent and that for the for flashlights also stood at 14 per
The company also sold its Chennai and Hyderabad property for a total consideration of Rs 200 crore primarily to pay off debts of around Rs