BM Khaitan-led Williamson Group is selling its flagship company Eveready Industries. Agency sources told this on Friday. According to Williamson, Magazine Group is considering valuation of Eveready for 3,000-4,000 crores. Kotak Mahindra Bank has been given the responsibility of finding a buyer. Eveready is the largest company in the dry cell battery and flashlight sector.
Eveready stock rises 13%
Williamson Group will not be completely out of the Eveready but will maintain some stake. Khaitan has 45% share of Eveready. It is not clear whether the Williamson Group will maintain the controlling stake in the Eveready or, as a minority shareholder.
Eveready Industries shares rose strongly on Friday due to reports of stake sale. It closed at 205.20 with a rise of 13.06% on the BSE. The current market cap of the company is Rs 1,491.54 crores.
Eveready's revenue in the financial year 2017-18 was Rs 1,450 crores. The estimated financial year (2018-19) is estimated to be Rs. 1,600 crore. Eveready management also tried to convert it into FMCG company.
Eveready is about 100 years old company in the country. From 1905 onwards the Union Carbide was entitled. The Khaitan family had bought Eveready in 300 million in the 1990s.Rajasthan Tourism App - Welcomes to the land of Sun, Sand and adventures