Eveready Industries chairman, MD quit after open offer fom Dabur's Burman family

Days after Dabur India promoters Burman family made an open offer to take control of the Kolkata-based Eveready Industries, the firm's chairman and managing director quit. In a regulatory filing, the company informed its stakeholders today that its chairman Aditya Khaitan and MD Amritansu Khaitan have tendered their resignations.

"Aditya Khaitan and Amritanshu Khaitan have tendered their resignations from the Board, as Non-Executive Director and Chairman and as Managing Director of the company, respectively, w.e.f. March 3, 2022, in view of the above expression of interest, to enable the company to benefit from new leadership and direction," the statement read.

The development came after the Burman family, through its various group entities, made an open offer to acquire an additional 26 per cent stake in Eveready. At Rs 320 per share, the group offered to purchase some 1.89 crore shares in an all cash deal.

Incidentally, the Burman group was already a major stakeholder in Eveready with 19.84 per cent shares in its kitty. On Monday, it purchased an additional 5.26 per cent shares through its stock broker JM Financial Services. For the open offer, this time the Burman family has put forward a bunch of group entities like VIC Enterprises Pvt Ltd, MB Finmart Pvt Ltd, Gyan Enterprises Ltd, Chowdry Associates and Puran Associates Pvt Ltd.

If its open offer passes through, the Burman family companies together would own nearly 52 per cent stake in Eveready Industries - turning it into the promoter group with majority stake in the company.

Along with the offer to take control of the firm, the Burman Group - represented by the above mentioned four entities - have sought adequate representation at Eveready board. It has sought three board positions that it said would be non-executive directors.

"At an appropriate time, we would also request that the board considers reconstitution the audit Committee, the nomination and remuneration Committee and such other strategic committees of the board so that the aforesaid directors have appropriate representation on such committees," the Burman Group write to the Eveready board in a letter.

After the two top executives' resignation, the board is roping in joint MD Suvamoy Saha to take charge as Eveready's MD in the interim period.