Homegrown consumer electrical major Orient Electric Ltd (OEL) was listed at Rs 135.25 on the Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) and hit the upper circuit limit of 5% to Rs 142 on Monday. The listing follows the demerger of the company from Orient Paper & Industries Ltd (OPIL) last year.
With the stroke of the ceremonial bell at BSE, the equity shares of OEL started trading on BSE and NSE. As per the Scheme of Arrangement between OPIL and OEL, and their respective shareholders and creditors, the consumer electric business of the former has been transferred to and vested in the latter. In consideration thereof, OEL has issued to the shareholders of OPIL, 1 equity share of Re 1 each of OEL for every 1 (One) Equity Share of Re 1 each held in OPIL, as on the record date of January this year, OEL said in a press release.
The issued, subscribed and paid-up equity capital of the company post arrangement is Rs 21.22 crore.
Commenting on the listing of the company, Rakesh Khanna, MD & CEO, OEL, said, “The vertical demerger of consumer electrical business of Orient Paper & Industries Ltd into an independent listed entity is part of a well thought out strategy to unlock the true potential of this business, thus enhancing shareholder’s value. It will allow both Orient Paper Industries Ltd and Orient Electric Ltd to focus on their core competencies and to pursue their independent strategies.”
Khanna added, “The move will allow both the companies access to varied sources of funds for rapid growth of their respective businesses. From being the oldest and the largest manufacturer and exporter of fans from India, Orient Electric today has established itself as a diversified electrical company with a wide portfolio including lighting, home appliances and switchgears. The listing now opens new doors of opportunities for Orient Electric to usher in the next phase of growth.”
The Orient Electric Ltd stock will trade under the code ‘541301’ on BSE and under the code ‘ORIENTELEC’ on NSE.