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Bajaj Electricals to review corporate structure; stock jumps 11%

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Bajaj Electricals share price jumped as much as 11 percent on Friday as the company's board of directors has authorised the management to review the corporate structure to unlock growth and value creation for all business segments. The stock was the best performer on Nifty500.

Bajaj Electricals to review corporate structure; stock jumps 11%
Bajaj Electricals share price jumped as much as 11 percent on Friday after the company's board of directors authorised the management to review the corporate structure to unlock growth and value creation for all business segments.
At 9:30 am, the stock was trading 8.1 percent higher at Rs 1,131.7 on BSE. The stock opened with a gain of 10 percent today. It was the best performer on Nifty500.
The stock has gained 85 percent YTD as compared to Nifty500's 31 percent surge.
Bajaj Electricals is currently engaged in the Consumer Product segment which includes appliances, fans and consumer lighting products, and an Engineering Procurement and Construction segment that includes power transmission and power distribution and illumination projects.
The company also has a strong presence in premium home appliance and cookware segments with brands like Morphy Richards and Nirlep.
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“Considering the varied nature and potential opportunities of each of the business segments and the need for a focused approach to unlock these opportunities, the Board of Directors of the Company has decided that the Company should undertake a comprehensive review of the existing corporate structure,” Bajaj Electricals said in a press release.
“This will encompass an evaluation of full range of options and alternatives (including demerger(s), subsidarisation(s), strategic partnerships etc.),” the company added.
Streamlining of the business structure, tailoring capital structure and capital allocation policies, distinct investment profiles, accelerating sustainability initiatives and expediting ESG practices are some of the strategic objectives outlined by the Board of Directors.
"I am confident that this will help each of the business segments to bootstrap and unleash growth in an unconstrained manner,” said Anuj Poddar, Executive Director of Bajaj Electricals.
Bajaj Electricals reported a growth of nearly 18 in its consolidated net profit at Rs 62.55 crore for the quarter ended September 2021. Its total revenue from operations rose nearly 7 percent to Rs 1,302.02 crore during the September quarter, as against Rs 1,217.71 crore in the corresponding period last year.
 
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