Bajaj Corp buys land in Mumbai, stock tanks 16%

Bajaj Corp has plunged 16% to Rs 101 after the company said it has acquired a land in Mumbai to develop the corporate office for total consideration of Rs 75 crore.

“The company has acquired Uptown Properties and Leasing Pvt Ltd (Uptown), which owns a plot of land at Worli, Mumbai. The aggregate cost of acquisition was Rs 75 crore, comprising of taking over of net liabilities of Rs 49.50 crore and purchase of the entire paid-up equity share capital from its existing promoters at an aggregate consideration of Rs 25.50 crore. Consequently, Uptown has become a wholly owned subsidiary of the company with effect from September 28, 2011," Bajaj Corp said in a filing to the stock exchanges.

“The company is proposed to be developed for the corporate office. Uptown is presently not engaged in any business activity in aforementioned plot of land," it added.

The stock hit a low of Rs 99.50 after opening at Rs 120 on the BSE. The trading volume has jumped over ten-fold so far. As many as a combined 301,142 equity shares have changed hands, as against an average less than 30,000 shares traded daily in past two weeks.