Bajaj Holdings gains post acquisition of MSL stakes

Bajaj Holdings & Investment has acquired a 27 per cent stake in Maharashtra Scooters (MSL). Shares of Bajaj Holding rose almost 3 per cent intraday reacting to the announcement made before market hours. 

Bajaj Holding has landed with 30,85,712 equity shares from Western Maharashtra Development Corporation (WMDC). The total consideration paid by Bajaj Holdings to WMDC with respect to the said acquisition was around Rs. 222.48 crore at the price, i.e. Rs 232 per share along with interest of 18 per cent per annum (p.a.) from the date of award, January 14, 2006 up to the date of payment effected on January 14, 2019. This acquisition is pursuant to the Supreme Court order, for the transfer/acquisition of shares order dated January 9, 2019. Consequent upon the acquisition of 27 per cent stake of MSL from WMDC, Bajaj Holdings has 51 per cent shareholding in MSL. MSL has hence become a subsidiary of Bajaj Holdings. 

Bajaj Holdings & Investment is essentially a holding and investment company focusing on earning income through dividend, interest and gains on investments held. 

On Tuesday, the shares of Bajaj Holdings opened at Rs. 3,598 against Monday’s close of Rs. 3,539.70. At 14:30 hours, the stock was trading at Rs. 3,601, Rs. 61.30 or 1.73 per cent higher than the previous close. Its intraday high was Rs. 3,643 and intraday low was Rs. 3,550 per share on the BSE. The 52-week high stood at Rs. 3,799 and 52-week low was at Rs. 2,203.65 per share on the BSE.