| Rahul and Shishir Bajaj swap shares, end dispute | |
| Abhineet Kumar, / Mumbai December 31, 2008, 0:26 IST | |
The Bajaj family dispute is set to end, finally. Shishir Bajaj today sold his 25 per cent holding in the primary group investment firm Bajaj Sevashram to his brother Rahul Bajaj in an off-market deal. This was after Rahul Bajaj transferred his group’s entire 29.62 per cent shareholding in Bajaj Hindusthan.
“Both brothers have transferred the (requisite) shareholding in a simultaneous effort,” said Niraj Bajaj, managing director, Mukund Ltd, and a cousin supporting the Rahul Bajaj faction. “It will take a day’s time for the transfer to be recorded in the demat format,” he said. The final documents are expected to be signed late on Tuesday evening or Wednesday.
Bajaj Sevashram, the primary group investment firm, holds 100 per cent in the other holding company Jamnalal Sons, which in turn holds a 78 per cent in another investment firm, Bachhraj & Co.
By selling his 25 per cent stake in Bajaj Sevashram, Shishir Bajaj has exited all group investment firms that held stakes in different companies of the Rahul Bajaj faction. However, he continues to hold his direct investments in the companies of the Rahul Bajaj faction, including Bajaj Auto.
“Shishir Bajaj has transferred only the shareholding that he had through public limited companies (the group investment firms),” said a person who mediated the deal. “His direct shareholding in the Rahul Bajaj faction companies is at a minimum permissible level and that need not be transferred,” he said.
According to stock exchange data for shareholding up to September, Shishir Bajaj held the following direct investment in Rahul Bajaj faction companies: 0.5 per cent stake in Bajaj Auto, 0.5 per cent in Bajaj Financial Services, 0.7 per cent in Bajaj Holdings, 0.6 per cent in Mukund, and 0.1 per cent in Bajaj Electricals.
However, Rahul Bajaj has transferred his personal shareholding along with the group shareholding of Bajaj Hindusthan to Shishir Bajaj.
So far, Shishir Bajaj was acting as the chairman for Bajaj Sevashram and Bachhraj & Co. With his exit, the board of these privately held companies will appoint a new chairman “in a few days”, Niraj Bajaj said.
The only unfinished task in the six-year-old saga remains the interest of minority shareholders of Bachhraj & Company who together own 22 per cent in the group investment firm.
Madhav N Pittie of the Pittie family that holds a 12.5 per cent stake in Bachhraj & Co on Monday moved the Bombay High Court for the loss that the group’s investment firm would have made for selling Bajaj Hindusthan’s share at Tuesday’s market price to Rahul Bajaj.
The matter of compensation for the minority shareholder is subjudice and it will take some time before the loss is established and compensated.
On Tuesday, Bajaj Hindusthan shares on the Bombay Stock Exchange closed at Rs 66.15 — 3.69 per cent higher than the previous day’s closing. Bajaj Auto closed at Rs 386.45, up 4.64 per cent higher from the previous closing. The Sensex, the benchmark index of the exchange, gained 1.92 per cent to 9716.16.
Also read:
Dec 29: Court asks Rahul Bajaj to compensate minority shareholder
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