The Burman family, which has known the Khaitan family for decades, has been buying into Eveready since March 2019
Shares of Eveready Industries
gained 3 per cent to Rs 137 apiece on the BSE on Thursday after rating agency India Ratings and Research
upgraded the company’s Long Term Credit Ratings to ‘IND BB+’ from ‘IND BB’. Moreover, the outlook has been changed to 'positive'.
According to the latest ratings upgrade, Eveready's Term Loans are rated 'IND BB+' with a 'Positive' outlook. That apart, reaffirmed Fund-based Limits Long Term/Short Term rating as 'IND BB+' with 'Positive/IND A4+' outlook, and Non-fund based Limits Long Term/Short Term rating as 'IND BB+' with 'Positive/IND A4+' outlook.
"The upgrade reflects EIIL’s improved liquidity position aided by deleveraging in 2HFY20, coupled with sustained profitability in FY20. The Positive Outlook reflects Ind-Ra’s expectations of a further improvement in EIIL’s business profile and its liquidity position in FY21, backed by the improving performance of its battery and flashlight segments, a possible resolution of the contingent liability issue and the possibility of a managerial/board representation by EIIL’s largest shareholder the Burman family," the agency said in a press release.
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The Burman family, which has known the Khaitan family for decades, has been buying into Eveready since March 2019. Last month, it bought an 8.48 per cent stake, taking its holding to 19.84 per cent while the promoters’ stake slipped to 15.07 per cent.
“We are the largest shareholders in Eveready, but our investment is financial in nature. We hope that the company is run efficiently for the benefit of all shareholders,” said Mohit Burman, vice-chairman of Dabur India.
At 11:21 am, the stock was trading 2.26 per cent higher at Rs 136 apiece on the BSE, as against 238 points, or 0.6 per cent, rally in the benchmark S&P BSE Sensex.