 "Bajaj Electricals surges 11% on board nod for business restructuring plan")
Shares of Bajaj Electricals surged 11 per cent to Rs 1,159.95 on the BSE in Friday’s intra-day trade after the household appliances company announced that its board approved business restructuring.
At 10:36 am, Bajaj Electricals was up 8 per cent at Rs 1,134 on the BSE. In comparison, the S&P BSE Sensex was down 0.31 per cent at 58,624. The stock had hit a 52-week high of Rs 1,588.55 on September 17, 2021. The trading volumes at the counter jumped over five-fold with a combined around 1.4 million equity shares changing hands on the NSE and BSE.
“The board of directors of the company, at its meeting held on December 9, 2021 has authorised some of the directors and officials of the company to review the corporate structure of the company to unlock growth and value creation for all business segments (restructuring),” Bajaj Electricals said.
The board has also approved the formation of a wholly owned subsidiary of the company, which could provide a ready vehicle to enable the above restructuring it added.
Bajaj Electricals is currently engaged in consumer product segment (‘CP’) (which includes appliances, fan and consumer lighting products) and engineering procurement and construction segment (‘EPC’) (which includes power transmission and power distribution and illumination projects).
Considering the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock these opportunities, the Board of Directors of the Company has decided that the Company should undertake a comprehensive review of the existing corporate structure, the company said in a press release.
The board of directors has authorised the BEL management to evaluate and recommend such options and alternatives, and subject to such detailed evaluation, consider housing the power transmission and power distribution business verticals as a standalone / independent legal entity.
At 10:36 am, Bajaj Electricals was up 8 per cent at Rs 1,134 on the BSE. In comparison, the S&P BSE Sensex was down 0.31 per cent at 58,624. The stock had hit a 52-week high of Rs 1,588.55 on September 17, 2021. The trading volumes at the counter jumped over five-fold with a combined around 1.4 million equity shares changing hands on the NSE and BSE.
“The board of directors of the company, at its meeting held on December 9, 2021 has authorised some of the directors and officials of the company to review the corporate structure of the company to unlock growth and value creation for all business segments (restructuring),” Bajaj Electricals said.
The board has also approved the formation of a wholly owned subsidiary of the company, which could provide a ready vehicle to enable the above restructuring it added.
Bajaj Electricals is currently engaged in consumer product segment (‘CP’) (which includes appliances, fan and consumer lighting products) and engineering procurement and construction segment (‘EPC’) (which includes power transmission and power distribution and illumination projects).
Considering the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock these opportunities, the Board of Directors of the Company has decided that the Company should undertake a comprehensive review of the existing corporate structure, the company said in a press release.
The board of directors has authorised the BEL management to evaluate and recommend such options and alternatives, and subject to such detailed evaluation, consider housing the power transmission and power distribution business verticals as a standalone / independent legal entity.
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