Sources close to the development confirmed that the shares were acquired on behalf of the Burman family and it was a strategic investment. Though Burmans have been shoring their holding in Eveready Industries
since late last year, so far, they have not asked for a seat on the company's board.
The latest increase in stake brings the Burman family holding in Eveready close to the promoter holding. As of March 2020, it was at 22.99 per cent according to an exchange filing.
Sources indicated that Burmans were investing in Eveready because they saw value in it. In the fourth quarter, though Eveready's operating income was lower by 28 per cent to Rs 224.20 crore, profit before tax increased 205 per cent to Rs 16.74 crore.
In its results commentary, the company said that its core categories of batteries and flashlights were witnessing a healthy demand given the sharp decrease in dumped imports from China and the disruption case to the unorganised market for non-availability of supplies. The situation in the battery segment is expected to improve further once the full effect of implementation of BIS standards comes into force.