Eveready Industries India zooms as RBI raises FII investment limit

Eveready Industries India (EIIL) rallied 6.99 per cent on the BSE in the early morning trade and is trading at Rs 291.1 on intraday basis. The share price zoomed as the Reserve Bank of India allowed foreign investors to invest up to 49 per cent stake in the company under the Portfolio Investment Scheme.

Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49 per cent of the paid up capital of EIIL under the Portfolio Investment Scheme (PIS)as per notification dated September 29, 2015.

EIIL has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs and RFPIs. The purchases could be made through primary market and stock exchanges.

EIIL's shareholding pattern indicates that FII holdings expanded considerably by 582 basis points to 16.29 per cent and DII holdings contracted by 181 basis points to 7.84 per cent during June 2015 quarter from March 2015. The Promoter and Promoter group has 43.92 per cent, others have 31.95 per cent shareholding in the company as per June 2015. Now increment on FII limit, FIIs, NRIs and PIOs (Persons of Indian Origins) can invest in primary and secondary capital markets in India through PIS.

On the financial front, EIIL's revenue increased by 7.60 per cent to Rs 348 crore in Q1FY16 as compared to the same period in the previous fiscal year. The company's net profit jumped by 49.91 per cent to Rs 15.89 crore in Q1FY16 on yearly basis.

EIIL is in the business of marketing dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products. The Company offers products, including dry cell batteries, flashlight (torches), and lighting and electrical products. Its products are available under the brand name EVEREADY. EIIL offers alkaline batteries, EVEREADY ULTIMA; rechargeable batteries, EVEREADY RECHARGE; brass torches, EVEREADY JEEVAN-SATHI; light-emitting diode (LED) flash lights, EVEREADY DigiLED, and packaged tea, including EVEREADY PREMIUM GOLD, JAAGO and TEZ.

The Company has distribution networks all over India with around 15 branches. Its manufacturing units are located in Kolkata, Noida, Uttaranchal, Chennai, Lucknow and Maddur. EIIL also has its own flashlight design and development unit. It has a packaging unit for packet tea at Chuapara tea estate.