In November 2015, the Board of Directors of Bajaj Electricals Ltd and Hind Lamps Ltd approved the scheme of arrangement for demerger of manufacturing business of Hind Lamps Ltd to Bajaj Electricals Ltd.
Bajaj Electricals Ltd (BEL) incorporated on July 14, 1938, is a part of “Bajaj Group”. Bajaj Electricals business is spread across – Consumer Products (Appliances, Fans, Lighting), Exports, Luminaires and EPC (Illumination, Transmission Towers and Power Distribution). To increase its footprint globally and in India, the company has partnered with reputed brands from across the world such as Greystone of Canada and Magnum Energy of USA for Wired and Wireless Sensors, Disney of USA and Midea of China for Fans, and Morphy Richards of UK for Appliances and many more. Bajaj Electricals Ltd is enjoying a market cap of Rs 4,817 crore.
Hind Lamps Limited (HLL) is an existing public limited company incorporated on April 30, 1951, is engaged in the business of manufacturing of GLS bulbs, HID bulbs and aluminium caps. The equity shares of HLL are not listed on any stock exchange.
Demerger of business of manufacturing of GLS bulbs and aluminium caps manufacturing unit of HLL located at Shikohabad, Dist. Firozabad, Uttar Pradesh and HID Lamps manufacturing unit located at Parwanoo, Himachal Pradesh as going concern. The trading business of HLL shall remain with HLL. There is no significant stake increase of BEL post transaction as the demerger is happening mostly on share consideration as mentioned in following paragraphs.
Appointed date taken for all tax and other regulatory purposes is March 31, 2014.
In consideration of the above said demerger, BEL shall issue 97 equity shares of face value Rs 2 each fully paid up (called as New Equity Shares) for every 1000 equity shares of face value Rs 25 fully paid up held by the shareholders of HLL.
On November 9, 2017, the board of directors of both the company approved of the revised share allotment ratio in compliance to para 8 of SEBI Circular no: CFD/DIL3/CIR/2017/21 dated 10th March 2017.
Statement of Consideration
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