Shares of Bajaj Electricals Ltd zoomed as much as 10.27% to hit a high of ₹398 apiece in early trade on Tuesday, March 17, reacting sharply to the company's definitive agreement to acquire the intellectual property and brand rights of Morphy Richards for ₹141.4 crore. The acquisition spans key South Asian markets including India, Nepal, Bhutan, Bangladesh, Sri Lanka, and the Maldives, strengthening the company's position in the consumer appliances space. This positive market reaction builds on the previous surge when shares had already gained 10.5% following the initial announcement, demonstrating sustained investor confidence in the strategic move.
The total consideration including withholding tax and stamp duty amounts to ₹141.4 crore, while the total cash outflow including GST at 18% (available as input tax credit) is ₹197.47 crore. The payment structure involves ₹49 crore on the transfer date, ₹49 crore on or before March 31, 2027, and ₹43.4 crore on or before March 31, 2028, all payable in pound sterling. The release of payment requires 10 business days. The acquisition also terminates the previous trademark licence agreement with Glen Electric Limited, originally dated March 17, 2022, with outstanding royalties of £641,780.14 payable to Glen Electric under the termination agreement.
As reported by The Hindu BusinessLine, Sanjay Sachdeva, MD and CEO of Bajaj Electricals, stated that this acquisition will provide strategic flexibility to accelerate growth in premium segments through faster innovation and sharper market execution. The acquisition builds on over two decades of partnership under a licensing arrangement, with the licensing pact last renewed in 2022 for 15 years. Morphy Richards, founded in the UK in 1936, has a strong global reputation for premium, design-led home appliances and personal care products, with Bajaj Electricals managing the brand under licensing arrangements since 2002. Fergal Naughton, Executive Chairman of Glen Dimplex, expressed confidence that the brand will continue to thrive and evolve under Bajaj Electricals's management, citing their proven track record and deep understanding of the local consumer landscape.
According to The Hindu BusinessLine, the acquisition spans key South Asian markets, strengthening Bajaj Electricals' position in the consumer appliances space. In India, Morphy Richards has been one of the leading international brands across multiple product categories under Bajaj Electricals' management since 2002. The deal provides the company with full ownership of the brand in these territories, covering trademarks, domain names, social media accounts, and associated goodwill, giving Bajaj Electricals complete control over the Morphy Richards brand across the specified markets. With full ownership, the company aims to strengthen its multi-brand strategy and step up investments in innovation, design and go-to-market execution to create greater value for consumers, partners and shareholders.
As reported by Upstox, Bajaj Electricals is a consumer appliances and lighting solutions company headquartered in Mumbai with a turnover of ₹4,828 crore in FY 24-25. The company is part of the $100 billion multinational conglomerate Bajaj Group, founded by Jamnalal Bajaj, and was established in 1938. The company's business portfolio spans Consumer Products (Appliances and Fans) and Lighting Solutions (Consumer and Professional Lighting). According to The Hindu BusinessLine, Sanjay Sachdeva emphasized that this acquisition is a natural next step in their portfolio journey, enabling the company to invest more consistently, innovate faster, and accelerate growth across premium consumer segments by understanding Indian consumers' evolving needs for convenience, design, and reliability.
