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    Bajaj Electricals to restructure consumer, power biz; recovers 12.5% in past 5 sessions

    market | IST

    Bajaj Electricals to restructure consumer, power biz; recovers 12.5% in past 5 sessions

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    In a bid to "unlock value" for shareholders, Bajaj Electricals intends to create separate entities for its consumer and power businesses and the management believes that the process should be completed in nine months.

    In a bid to "unlock value" for shareholders, Bajaj Electricals intends to create separate entities for its consumer and power businesses. The demerger is likely in nine months, Bajaj Electricals executive director Anuj Poddar said on Monday.
    Poddar said, “We will have an entity focused on the consumer business, and a separate entity focused on the power infrastructure business. The rationale for that is very clear and very compelling. If I talk from an investor perspective, they have been asking for this for a long while. I do believe this will unlock value if all the internal benefits come through, of course, it will unlock value for investors. As well, it will allow the company to attract a wider and deeper set of investors who typically look for targeted business entities and not consolidated businesses.”
    Bajaj Electricals shares are trading 2.2 percent in the green at the time of publishing. In the past five trading sessions, the stock has recovered 12.6 percent to trade flat when seen over a month's period.
    Poddar said the company has been taking several steps to pare its debt. The total liabilities for the company stood at Rs 2,509 crore for FY21.
    The company is also looking to manage costs to maintain its margins for the year. It is likely to end the year with single-digit growth, Poddar added.
    Poddar said, “We have not taken a price hike so far in this quarter. I think demand has been kind of on the fence in this quarter so waiting for the right time. We will do that at the appropriate time. We have been taking other measures to actually mitigate the cost side impact in our P&L. So we are looking to maintain margins.”
    For full management commentary, watch the video.
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