The BM Khaitan group is set to hike its holding in its flagship outfit Eveready Industries India Ltd by 3.47%.
The Kolkata-based Khaitans, Asia’s largest tea growers, are now taking their promoters? stake in the dry-cell major Eveready from the present 40.47% to 43.94%.
The stake would be hiked through an issue of 45 lakh convertible warrants on private placement basis to group outfit Williamson Magor & Co Ltd. For this, the Khaitans would be paying Rs 26.10 crore or Rs 58 for every share having a face value of Rs 5 each. The decision to issue the warrants was taken on September 6 at a board meeting.
The conversion price compares favourably with the current valuation of Eveready at the bourses. Eveready closed at Rs 54.55 on Wednesday after reaching a high of Rs 56.90 on BSE.