Mumbai: The Bombay high court on Tuesday sanctioned the demerger scheme of Bajaj Auto Ltd, the country’s second largest two-wheeler maker. The company will now file for an order to this effect with the office of the Registrar of Companies.
The demerger of Bajaj Auto, announced on 17 May last year, separates the company’s automotive and financial businesses into two units. Bajaj Holdings and Investment Ltd will take over the company’s two- and three-wheeler business, while Bajaj Finserv Ltd will be responsible for the company’s financial services business, including insurance and auto finance.
The demerger also gives clear responsibilities to the two sons of Bajaj Auto chairman Rahul Bajaj. His elder son Rajiv Bajaj will head the automotive operations, while younger son Sanjeev Bajaj will be responsible for the company’s financial services business.
- Ammar Master
REC, V-Guard shares fully sold on Day 1
Mumbai: Two ongoing public issues — Rural Electrification Corp. Ltd (REC) and V-Guard Industries Ltd — on Tuesday received more bids for the shares floated, indicating a trend reversal in India’s primary markets.
REC, which on Tuesday opened bids for the Rs1,640 crore sale of 156.12 million shares, received 2.14 times more bids at 6pm, according to data on the National Stock Exchange. The relatively smaller float (Rs70 crore) of Kerala-based V-Guard Industries also sold out completely on Tuesday, inviting 1.14 times more bids.
Investors, unabated by the poor fate of newly listed stocks, including the much hyped Reliance Power Ltd that had issued India’s largest ever IPO in January, led to full subscription of REC and V-Guard, said analysts.
Earlier this month, two large public issues — Emaar MGF Land Ltd and Wockhardt Hospitals Ltd — had wrecked after they failed to attract investors.
- Nesil Staney