Eveready Industries share price tumbled over 7.5 per cent to Rs 347.45 apiece on Wednesday, after the Burman Group, promoters of Dabur India, made an open offer to acquire an additional 26% share of the Khaitans-promoted company for Rs 604.76 crore. The open offer price is Rs 320 per share. The battery maker stock is down 19 per cent from its 52-week high hit in October last year. Anuj Gupta, Vice President, IIFL Securities, told FinancialExpress.com that 26% open offer will provide support to the company “We are recommending buy around 330 with the stop loss of 290 for the target of 400 levels,” Anuj Gupta added.
The mandatory open offer under the takeover regulations was made even as the Burmans, already the single-largest shareholder in the Williamson Magor group flagship, proposed to purchase an additional 5.26% share of the battery maker for Rs 122.30 crore, taking their total shareholding to 25.11%. At the end of the third quarter this fiscal, Khaitans owned 4.84% stake in the Kolkata-based company, while Burmans held 19.84%.
Five investment arms of the Burman family — Puran Associates, VIC Enterprises, MB Finmart, together with Gyan Enterprises and Chowdry Associates — have announced an open offer for acquisition of up to 1.9 crore fully paid-up equity shares of face value of Rs 5 each (offer shares) from the public shareholders of the battery major, representing 26% of the expanded voting share capital, at a price of Rs 320 per offer share, aggregating to a total consideration of up to Rs 604.76 crore payable in cash, the company said in a BSE filing. JM Financial has been appointed for managing the issue.
In past one month, Eveready Industries share price has rallied 27 per cent, and 6 per cent in six months, and 9.5 per cent so far this year. The stock has soared nearly 20 per cent in past one year. While Dabur India share price was up 0.6 per cent in last one month. The stock crashed 13 per cent in six months period. Dabur India stock has fallen 3.5 per cent so far this year, while it has surged nearly 10 per cent in past one year. In comparison, S&P BSE Sensex fell 7.2 per cent in one month, 4.6 per cent in last six months, and 6.6 per cent so far this year. The 30-share index gained nearly 10 per cent in last one year.
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