Stocks

Burmans of Dabur now own over 9 per cent in Eveready

Abhishek Law Kolkata | Updated on March 06, 2020 Published on March 07, 2020

Transactions were done through portfolio management firm Guardian Advisors on behalf of family

The Burman family, promoters of Dabur India, are said to have picked up a significant 9.26 per cent stake in Kolkata-based Eveready Industries, the country’s largest dry cell batter maker. The transactions have been initiated through Guardian Advisors.

Guardian Advisors, a portfolio management firm owned by Arjun Lamba and others, manages the investment for the Burmans, besides others. Sources say the stake pick-up has been on behalf of the Burman family.

Incidentally, the portfolio management firm has for quite some time been picking up stake in the Khaitan-family owned Eveready Industries. Over the last few months, it has steadily picked up a 5.9 per cent stake; and on Friday it announced a further increase in stake by another 3.4 per cent. Fresh stake pick-up was done through open market purchases on March 5 and March 6.

‘Power of attorney’

In a regulatory filing on Friday, Guardian Advisors said, its investment in Eveready are on behalf of its clients. The ownership of the assets was with the clients and Guardian Advisors have the “power of attorney” on behalf of its clients.

“Guradian Advisors has acquired further shares in the company (Eveready) and nows hold 9.26 per cent equity stake in Eveready Industries under various client accounts,” it said to the BSE today.

The companies on behalf of which acquisitions were made in Eveready include MB Finmart Pvt Ltd, Puran Associates, VIC Enterprises Ltd and Chowdry Associates. The Burman family members are there on the boards of all these companies, a search on the ROC reveals.

When contacted, a Dabur India spokesperson said investments (in Eveready) were made by the family in their personal capacities. “These are personal investments of the promoter family and has nothing to do with Dabur India,” he told BusinessLine.

Debt, a concern

For Eveready Industries, high debt has been a major concern. It has been trying to pare debts of around ₹400 crore through asset monetisation. Reports have also suggested that the company was open to bringing in strategic investors or forge partnerships.

The battery-maker has hived off its loss-making packet tea business in order to focus on its core business of batteries, lighting and small appliances. In its bid to manage debt, the company concluded sale of its Chennai and Hyderabad plots for about ₹200 crore. Sale proceeds are to used for paring debt.

Published on March 07, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.