Bajaj Hindustan shares were up 3.69% to close at Rs 66.10 on the BSE on Tuesday. Bajaj Auto shares, on the other hand, rose 4.64% on the BSE, to end the day at Rs 386.45, in what could be an indication that shareholders welcomed the settlement of an issue that had been simmering for long. On December 2 this year, the stock had touched a 52-week low of Rs 294.65 on the BSE.
Last week, in a notice to the National Stock Exchange, Shishir Bajaj had said he would acquire shares in Bajaj Hindusthan that Rahul Bajaj would buy from family members and group companies - Bachhraj & Co and Jamnalal Sons. Rahul Bajaj would acquire over 4.1 crore shares amounting to 29.2% stake in the sugar firm through an inter-se-transfer of shares among the promoters by way of market transactions. These shares would be acquired at the market price as on December 30, the notice said.
According to reports, the Mumbai High Court on Monday had asked Rahul Bajaj to compensate the Pittie family, a minority shareholder in Bachhraj & Company. The court has also asked Rahul Bajaj to deposit Bajaj Auto shares in lieu of money to be deposited within three weeks, reports said. This, however, could not be independently confirmed.
According to analysts, the deal is a positive step for the Bajaj Group and will add a lot of credibility to their business. This is not likely to make any difference to investors in the group companies, although Bajaj Hind will go through a change in management control, analysts said. According to the notice sent to the stock exchanges last week, the acquisition price per share is nil, in terms of the family arrangement cum settlement and on account of distribution of the estate of late Kamalnayan Bajaj.
The acquired shares, along with 0.21% already held by Rahul Bajaj as well as the holdings of six other family members amounting to 29.62%, would then be transferred in favour of Shishir.