Eveready climbs 5% as YES Bank acquires 9% stake

NEW DELHI: Shares of Eveready Industries climbed 5 per cent in Friday’s trade, only to erase gains. The scrip climbed as private sector lender Yes Bank acquired over 9 per cent stake in the battery maker by invoking pledged shares following loan default by a group company.

However, soon the stock cut gains to 1.85 per cent. At 9.20 am, the scrip was trading at Rs 71.50.

The bank acquired these 68,80,149 shares on the invocation of pledge subsequent to default of terms of credit facilities sanctioned by YES Bank to McLeod Russel. Eveready Industries and Mcleod Russel India are part of B M Khaitan Group companies.

Shares of McLeod Russel tanked 5 per cent to Rs 12.95. YES Bank dropped 4.10 per cent to Rs 94.85.

On Wednesday, ratings agency Icra downgraded the credit rating for Mcleod Russel’s long-term borrowing program and the short term rating to default grade.

Icra said the ratings continue to remain on “Issuer Not Cooperating” category. Separately, Mcleod Russel resubmitted its revised statement on impact of audit qualifications along with annual audited financial results to the exchange.