Consumer durables major Videocon Industries today surged over 5 per cent to hit a four-week high on the Bombay Stock Exchange amid speculations of demerger of the company's operations.
Shares of the company soared by 5.22 per cent to a four-week high of Rs 255.90 on BSE. The scrip moved up by 4.85 per cent to Rs 255.70 on the National Stock Exchange.
"The stock has shown a good run up which indicates the investor confidence in the consumer durable sector," SMC Global Vice President Rajesh Jain said.
Meanwhile, the broader gauge Sensex was trading at 18,423.12 points, up 0.12 per cent from previous close.
As per market speculations, the company may soon spin off its business into three verticals — consumer goods, telecom and oil & gas. There are also reports of company's plans of raising funds through qualified institutional placement (QIP) route.
The company is engaged in two core businesses---consumer electronic products and home appliances, and oil and gas exploration and production. Its subsidiaries include Paramount Global Ltd, Global Energy Inc, Sky Billion Trading Ltd, Videocon Global Ltd, Venus Corporation Ltd and Powerking Corporation Ltd, among others.
