Videocon climbs nearly 8%

MUMBAI: Shares of Videocon Industries were in the limelight Friday on reports that the company plans to spin off its energy business, including coal fields in Indonesia and oil and gas blocks in Brazil.

At 11:01 am, the company's shares rose 7.78 per cent to Rs 655.10 after rising to a high of Rs 664 in trade so far. In the past one month, the shares have appreciated over 87 per cent.

The buzzing shares took the BSE Consumer Durables Index up 3.17 per cent making it the biggest sectoral gainers while the broader market posted modest gains.

The report added Videocon would spin off six businesses into a separate company called Videocon Natural Resources, and retain a substantial stake in the new firm.

Videocon's shares have been buzzing over the past few weeks on speculation that the company is at an advance stage to set up 3,200-MW power plant. An eventual de-merger of the power company and separate listing on the bourses might also be on the cards.