New Delhi: The actions of Bajaj Electricals Ltd. (BEL) jumped 11.72% on Friday after its board of directors approved a review of the company’s structure. As of 1:21 p.m., the stock was up 8.07% to Rs 1,131 on the NSE platform. It hit an intraday high of Rs 1,169.15 against its previous close of Rs 1,046.50. On BSE, the script hit an intraday high of Rs 1,159.95.
The board of directors informed the exchanges that they would explore a full range of options and alternatives, including spin-off, spin-offs and strategic partnerships.
“The Board of Directors has authorized BEL’s management to assess and recommend such options and alternatives, and subject to such detailed assessment, to consider hosting the power transmission and distribution verticals in as a stand-alone or independent legal entity, ”the company said.
Shekhar Bajaj, Chairman and CEO, said, “Over the past two years, the power transmission and distribution verticals have refined their operational focus, ensuring project closure, increased power flows. cash flow, debt reduction, and most debt repayment, while simultaneously focusing on health and safety and general ESG. We believe that the time has now come to go further and review our structures to allow unconstrained commercial growth for each business segment. “
The objective of the exercise includes the rationalization of the company structure to improve market positions, generate long-term growth, a tailor-made capital structure and allocation policies based on the dynamics specific to the company. the company, BEL said.
The company also intends to appoint various advisers or consultants to help the board assess options and complete the process to review the way forward as soon as “practically” possible.
It had posted a net profit of Rs 63 crore in the second quarter of this fiscal year against Rs 53 crore during the period last year.