Promoter of Eveready Industries India Limited (BSE: 531508), Brij Mohan Khaitan is looking to sell Eveready Industries. “The B M Khaitan-led Williamson Magor is selling its flagship Eveready Industries, triggering an auction process for one of the country's oldest consumer brands,” people directly aware of the matter said. The promoter, Khaitan, who owns 45% in the publicly traded Eveready, is said to have mandated Kotak Mahindra Bank Limited (BSE:500247) for the potential sale, which could attract the interest of foreign and domestic strategic acquirers as well as private equity buyout specialist.

Sources close to the Khaitan family said the promoters would be looking to induct a strategic partner by diluting a major chunk of its stake as the first option, ”Ideally they would like to sell around 30% stake and retain 10-15%.” One of the sources cited earlier in the report said. An outright sale was the second option if the holding onto a minority ownership was not feasible, source added. Duracell International, Inc. and Energizer Holdings, Inc. (NYSE:ENR) are tipped to be in the race for a strategic partnership or a buyout of the battery business of Eveready Industries India from the B M Khaitan stable, sources familiar with the development said.

Some private equity players are also said to be interested. The sources indicated that Eveready was expecting an enterprise valuation of around INR 50 billion. Various options, including a partnership at the holding company level and even a slump sale of the batteries and flashlights business at a premium, are being considered, the sources said.