Bajaj Electricals resumes uptrend

Bajaj Electricals rose 1.61% to Rs 1192.95, as the scrip resumed its uptrend after a day's breather.

The scrip had declined 3.30% to end at Rs 1,174 on the BSE yesterday. On a year-to-date (YTD) basis, the stock has zoomed 95.57% while the benchmark Sensex has added 20.66% during the same period.

On the technical front, the stock's RSI (relative strength index) stood at 64.864. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day, 100-day and 200-day daily simple moving average (SMA) placed at 1089.86, 1093.13 and 941.53, respectively.

On 15 June 2018, Bajaj Electricals had entered into an agreement with Nirlep Appliances (subsidiary of the company); Mukund Bhogale, Rajani Bhogale, Ramchandra Bhogale, and Nityanand Bhogale (collectively, Continuing Shareholders of Nirlep); and other shareholders of Nirlep to purchase and acquire, along with its nominee shareholders, the entire equity shareholding of Nirlep from the sellers.

On 1 September 2018, as first tranche, Bajaj Electricals completed transactions towards acquisition of 79.85% equity share capital of Nirlep, for a cash consideration of Rs 30.70 crore, whereas, 0.36% equity share capital of Nirlep was acquired by the nominee shareholders of the company.

The company has a 'call option' to purchase further 19.78% equity shares in Nirlep or part thereof from the continuing shareholders, at an option price which shall then be determined/calculated as per terms prescribed under share purchase and shareholders agreement (SPSA).

The continuing shareholders also have a 'put option' to call upon the company to acquire their aforesaid 19.78% equity shares in Nirlep or part thereof.

In an exchange filing made after market hours yesterday, Bajaj Electricals said that the the continuing shareholders have exercised their aforesaid put option on 1 September 2021 and have called upon the company to acquire 147,061 equity shares (representing 19.78% stake) from them.

The company said that the Option Price shall be determined/calculated as per terms prescribed under SPSA.

The company will keep the stock exchanges informed/updated on this transaction, it added.

Nirlep is engaged in the business of manufacture of non-stick cookware products, kitchen hobs, pressure cookers and any other products in the kitchen-ware segment. Nirlep has its manufacturing unit located at Aurangabad, Maharashtra. The company reported turnover of Rs 51.37 crore for FY 2020-21.

Bajaj Electricals, a part of Bajaj Group, makes consumer products (appliances, fans, lighting) and executes EPC contracts (illumination, transmission line towers and power distribution).

The company reported a consolidated net loss of Rs 21.87 crore in Q1 FY22 as against a net loss of Rs 15.93 crore in Q1 FY21. Net sales during the quarter rose by 39.90% YoY to Rs 845.04 crore.

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