Maharashtra Scooters up 8% as it deemed fit for special-call auctions

Maharashtra Scooters has at least 90 per cent of its assets invested in Bajaj group companies

Bajaj group company Maharashtra Scooters shares climbed 8.2 per cent on the BSE and logged an intraday high of Rs 11,989.6 per share on Friday. The buying in the stock came after the company was identified as an eligible Investment Holding company (IHC) for special-call auctions for price discovery.

At around 11:47 AM, Maharashtra Scooters shares were up 2.04 per cent at Rs 11,305.05 per share on BSE. In comparison, the BSE Sensex was up 0.04 per cent at 81,038.62 around the same time. The market capitalisation of the company around the same time stood at Rs 12,920.05 crore. 

The National Stock Exchange (NSE) circular identified Maharashtra Scooters, along with TVS Holdings, and Kalyani Invest Co, among five other companies, for the special call auction scheduled to be held on October 18, 2024.  

"Trading members are requested to note that if the call auction for a security is not a success on day 1, it shall continue on the next day and till such time the price is discovered," the NSE notification added.

What is a special call auction?

A special call auction is a trading session without price limits that the market regulator Securities and Exchange Board of India (Sebi) conducts to improve price discovery for listed investment companies and investment holding companies (IC & IHC). 

The special call auction aims to address the gap between market prices and book values; enhance liquidity and investor interest; apart from providing a fairer and more transparent market environment.

About Maharashtra Scooters

Maharashtra Scooters is a core investment company (CIC) that has at least 90 per cent of its assets invested in Bajaj group companies, while the remainder is invested in debt and other instruments to achieve a reasonable return while safeguarding the principal.

The company focuses on manufacturing pressure die casting dies, castings, jigs, and fixtures primarily for the two- and three-wheeler industry. Recently, Maharashtra Scooters diversified its customer base beyond automotive components to include sectors such as telecommunications, generators, electric vehicles, and LED lighting components.

This strategic expansion not only mitigates risk for the company but also positions MSL to capitalise on emerging markets, demonstrating a proactive approach to growth and sustainability. 

The 52-week high of the company is at Rs 12,787.85 per share and the 52-week low is at Rs 6,702 per share.

In the past one year, Maharashtra Scooters shares have gained 39.6 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period.