Eveready surges 10% on reports of Burmans picking 8.8% stake

NEW DELHI: Shares of Eveready Industries surged 10 per cent on Tuesday after reports that promoters of FMCG giant picked a minority stake in the company via a block deal.

ET Now reported that nearly 64 lakh shares, comprising 8.8 per cent of equity shares of Eveready Industries, exchanged hands in a block deal. Neither Burmans, who control Dabur, nor Eveready could be reached for comments, ET Now said.

Shares of Eveready Industries gained 9.96 per cent at Rs 88.90 on BSE. Trade volume spiked over 38 times.


The news channel had in June reported that Burman family could infuse capital in personal capacity in Eveready while promoters may also put money in form of warrants. In lieu of the investment, Burmans will be offered 1-2 board seats as part of the arrangement.

As per the report, the funds will be used to trim high levels of debt in the company. The company which is valued at around Rs 550 crore has debt of about Rs 400 crore. The company in a regulatory filing had said it availed moratorium on some of its repayments to tide over the cash flow shortfall on account of the lockdown.

However, it expects that once cash flows normalize, it will be able to service its debt obligations. The extension of moratorium will also help ease the cash flow situation, the company said.

Shares of Dabur India were trading down 1.17 per cent at Rs 478.75 on BSE.