Tuesday, March 13, 2007

Rahul Bajaj buys into privately-held Bajaj holding company Bachhraj

Rahul Bajaj has acquired stake in Bachhraj and Company by buying out minority shareholders SK Birla, CK Birla and Yash Birla. Bachhraj is a privately-held holding company and is a step-down subsidiary of the main holding firm of the Bajaj Group, Bajaj Sevashram. Bachhraj holds a 24.54% stake in Bajaj Hindustan, the sugar company controlled by Shishir Bajaj. Bachhraj also has equity holdings in Bajaj Auto and Mukand. At Monday’s closing market price of the three listed companies, the direct equity held by Bachhraj in these companies would value its holding at a staggering Rs. 1093 crores. The shares have been purchased from the Birlas over the last one year by the Rahul Bajaj group.

This is significant in the wake of the recent spat that has arisen between Rahul Bajaj and Kushagra Bajaj, son of Rahul Bajaj’s younger brother Shishir Bajaj. Kushagra Bajaj has accused his uncle Rahul of trying to wrest control of the Bajaj group of companies belonging to the Shishir Bajaj faction. At the heart of the feud lies the various crossholdings of the extended Bajaj family in the numerous Bajaj group of companies.

Read the articles in The Economic Times 1 and 2.

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