Bajaj Electricals shares rally 13% on Morphy Richards brand acquisition

Shares of Bajaj Electricals Ltd rallied 13 per cent in Wednesday's trade after the company said its board has given its consent to a proposal for the acquisition of the ‘Morphy Richards’ brand and related intellectual property rights in the territories of India, Nepal, Bhutan, Bangladesh, the Maldives, and Sri Lanka. 

Bajaj Electricals would acquire the brand rights from Glen Electric Limited, a part of Ireland's Glen Dimplex Group, for a consideration of Rs 146 crore. 

Bajaj Electricals said the transaction will be subject to negotiation and execution of definitive agreements between the parties and the receipt of necessary statutory and regulatory approvals, as applicable.

Following the development, the stock climbed 13.38 per cent to hit a high of Rs 653.60 apiece on BSE earlier today. At 10.44 am, the scrip was still trading 8.62 per cent higher at Rs 626.70.

Bajaj Electricals said it would make further disclosures, as required under the SEBI Listing Regulations and the circulars issued thereunder, upon and subject to the execution of definitive agreements and the completion of subsequent events or milestones in relation to the Transaction.

"The aforesaid Board Meeting commenced at 6.00 p.m. and concluded at 6:35 p.m. We request you to take the above on record and treat this as compliance under the applicable provisions of the SEBI Listing Regulations, if any," Bajaj Electricals said.

The scrip is up 6 per cent in the past one month. In a clarification to stock exchanges, Bajaj Electricals recently said the increase in the trading volume of the equity shares of the company was purely market-driven, and the company has neither any knowledge of the reasons for the same nor any control over such movement.