Eveready Industries share price jumped 3 per cent to Rs 341.75 apiece on BSE on Wednesday after company said that Dabur India promoters Burman Group’s, Rs 604.76-crore open offer to acquire an additional 26% share of the Khaitans-promoted, is scheduled to open on 26 April 2022. Dabur India share price was up over 1.5 per cent to rule at Rs 563.20 apiece on BSE. The open offer price is Rs 320 per share. Analysts say that Eveready stock is in a bullish trend.
Buy Eveready share with SL of Rs 394
“After consolidation now it is heading northward and substantial volumes recorded. We are expecting that it may rise further and test 400 to 420 levels in the short term,” Anuj Gupta, Vice President, IIFL Securities, told FinancialExpress.com. Gupta added that investors can buy this stock with the stop loss of 394 for the target of 400 to 420 levels.
The date of commencement of the tendering period has been fixed on April 26, 2022, and the date of closure on May 10, 2022, JM Financial Ltd, the manager of the offer said in a draft letter of offer to the public shareholders of Eveready Industries India. Last date for upward revision of the offer price and the size of the open offer is 22 April 2022. Burman group, through various entities had made a Rs 604.76-crore open offer to acquire around 1.9 crore shares of Eveready Industries, representing 26 per cent of the expanded voting share capital, at a price of Rs 320 per share, payable in cash.
Eveready has a lot of potential and the new investment and board members can add more to the company and strategies which could help the company grow further, Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, told FinancialExpress.com. Chepa believes this can also give a new direction to the company and strong growth can be expected in the future.
Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com that Burma Group entities had been buying into Eveready since March 2019. In July 2020, it became the largest shareholder in Eveready with a 19.84 per cent stake after acquiring 8.48 per cent shares. And now they have announced the open offer for an additional 26 per cent in Eveready last month. “This gives another lifeline to Eveready Industries and the stock price is showing the ripple effect. In this momentum, the stock may go upto 360 levels in near term,” Singh added.
Eveready Industries stock price rose to a 52-week high of Rs 413.30 apiece on BSE in October year. Since then, the stock has fallen nearly 25 per cent, while Dabur India hit a 52-week low of Rs 502, earlier this month.
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