Promoter group Khaitan family's stake in Eveready Industries has slipped below five per cent after Vistra ITCL (India), the largest independent corporate trustee in the country, invoked pledged shares of the dry-cell battery major, according to a regulatory filing by the company.
After Vistra ITCL (India) invoked a total of 17,00,000 equity shares of Eveready Industries, the flagship company of the Williamson Magor Group, on October 7, the promoter's shareholding in the firm now falls to around 4.92 per cent from about 7.2 per cent in August.
At the end of June, the Khaitan family had around 22.16 per cent stake in the battery major.
The shareholding of the promoter group in the Kolkata-based firm has been falling with banks and financial institutions continuing to invoke pledged shares for recovery of their dues from other group companies.
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Khaitan family's stake in Eveready Industries had fallen below 10 per cent in August after IndusInd Bank acquired nearly 8 per cent stake by invoking pledged shares of the battery maker.
The company is yet to disclose its shareholding pattern by the end of September.
Calls to Eveready Industries Managing Director Amritanshu Khaitan to seek comments on the promoters' holding falling below five per cent remained unanswered.
The Burman family is the single largest shareholder in the city-based company with nearly 20 per cent stake.
Recently, the Khaitan family had also indicated that they were ready to jointly manage the company, which is listed on stock exchanges.
"Promoters are striving hard to work out a restructuring deal and it may take about a month before something concrete happens," sources told PTI.
Responding to shareholders' queries during Eveready's annual general meeting last month, managing director Amritanshu Khaitan said, "They (Burmans) have publicly mentioned that they found value in your company and thereby they have taken a position in the company.
"We value their investment as a shareholder we value that they see value in your company and thereby they invest here."
Eveready Industries was incorporated in 1934 and was a subsidiary of Union Carbide Corporation, US. The Williamson Magor Group acquired the company in 1993.
