Bajaj Electricals will review its corporate structure; Shares jump 11%

Bajaj Electricals share price jumped as much as 11% on Friday after the company’s board authorized management to review the company’s structure to unlock growth and value creation for all business segments.

As of 9:30 a.m., the stock was trading up 8.1% at Rs 1,131.7 on BSE. The stock opened with a 10% gain today. He was the top performer on Nifty500.

The stock is up 85% year-to-date compared to Nifty500’s 31% rise.

Bajaj Electricals is currently engaged in consumer products segment which includes household appliances, fans and consumer lighting products, and engineering and construction procurement segment which includes electricity transmission and distribution projects. energy and lighting.

The company also has a strong presence in the premium appliance and kitchenware segments with brands such as Morphy Richards and Nirlep.

Read also |

“Given the varied nature and potential opportunities in each of the business segments and the need for a focused approach to unlocking these opportunities, the Company’s Board of Directors has determined that the Company should undertake a comprehensive review of the existing corporate structure,” Bajaj Electricals said in a press release.

“This will include an assessment of the full range of options and alternatives (including spin-offs, spin-offs, strategic partnerships, etc.),” ​​the company added.

Streamlining the corporate structure, adapting capital structure and capital allocation policies, distinct investment profiles, accelerating sustainability initiatives and accelerating ESG practices are some of the strategic objectives defined by the Board of Directors.

“I am confident that this will help each of the business segments to initiate and unleash unconstrained growth,” said Anuj Poddar, Executive Director of Bajaj Electricals.

Bajaj Electricals recorded nearly 18% growth in its consolidated net profit to Rs 62.55 crore for the quarter ended September 2021. Its total operating income increased by nearly 7% to reach Rs 1,302.02 crore in the September quarter, against Rs 1,217.71 crore in the correspondent. period of last year.