The shares of Bajaj Electricals gained focus on Friday after the company announced that its Board of Directors had approved the review of its existing corporate structure ro unlock growth and value creation for all business segments.
The company's shares opened at ₹1,154.90 as against the previous close of ₹1,046.65. It gained further to record an intraday high of ₹1,159.95.
At 12:40 pm, Bajaj Electricals was trading at ₹1,128.00, up ₹81.35 or 7.77 per cent.
It recorded an intraday low of ₹1,099.60.
It was trading at ₹1,129.15 on the NSE, up ₹82.65 or 7.90 per cent.
Also read:Bajaj Electricals to move power business to a new entity
Bajaj Electricals informed the exchanges on Thursday that considering the Board of Directors of the company has decided that the company should undertake a comprehensive review of the existing corporate structure.
“Considering the varied nature and potential opportunities of each segments and the need for a focussed approach to unlock these opportunities, the board of directors has decided that the company should undertake a comprehensive review of the existing corporate structure,” Bajaj Electricals said in a filing with the stock exchanges.
This will encompass an evaluation of full range of options and alternatives (including demerger, subsidarisation, strategic partnerships etc). The company is currently engaged in Consumer Product segment (which includes appliances, fan and consumer lighting products) and Engineering Procurement and Construction segment (which includes Power Transmission and Power Distribution and Illumination Projects).
The board of Bajaj Electricals has authorised the management to evaluate and recommend options to consider housing the power transmission and power distribution business as a standalone entity.
In addition to the manufacturing and sale of appliances, fans, and consumer lighting products, Bajaj Electricals also has an engineering procurement and construction (EPC) business vertical that houses illumination projects business. The segment also includes Extra High Voltage (EHV) transmission line projects, EHV substations, monopoles for transmission and distribution, electrification projects, high mast and street lighting, sports lighting, industrial and commercial lighting, specialised illumination projects on turnkey basis, and other solutions.