Shares of India's largest two-wheeler maker Bajaj Auto fell for a second day, reacting negatively to the demerger of the non-auto business from the group's flagship company, whose new structure analysts termed as "convoluted".
The scrip plunged over 15 per cent soon after trading began this morning and closed 8.54 per cent down at Rs 2,286.80. It had fallen by seven per cent at Rs 2500.30 on Thursday.
Making things even worse, a number of brokerage houses downgraded their investment rating and target price for the stock, saying that the scrip could take a further hit if investors decide to sell-off in large numbers.
The stock fell by nearly 15 per cent to Rs 2,179 in intra-day trading on the Bombay Stock Exchange and 17 per cent on the National Stock Exchange as the scrip witnessed across the board selling.
As per the proposal, Bajaj group's auto business will be demerged into a new subsidiary Bajaj Holdings and Investment Ltd (BHIL) and other strategic businesses such as wind energy, insurance and financial services would be hived off into another new entity Bajaj Finserv Ltd (BFL).
Read more in DNA Money article.
Showing posts with label Bajaj Holdings and Investment Ltd.. Show all posts
Showing posts with label Bajaj Holdings and Investment Ltd.. Show all posts
Friday, May 18, 2007
Thursday, May 17, 2007
Bajaj Auto redesigned to ride on two new wheels
The board of Bajaj Auto Ltd (BAL) has approved the scheme for demerger of the businesses of the company. The Board of Directors, at its meeting held on May 17, 2007, approved the demerger plan.
It includes demerger of the two and three wheeler manufacturing undertaking, its strategic businesses comprising the generation of wind-energy using wind-farms, the insurance business conducted through its joint ventures Bajaj Allianz Life Insurance Company Ltd and Bajaj Allianz General Insurance Company Ltd, financial products distribution business conducted through Bajaj Allianz Financial Distributors Ltd and interests in retail-consumer finance business conducted by Bajaj Auto Finance Ltd. to two newly incorporated subsidiaries, Bajaj Holdings and Investment Ltd ("BHIL") and Bajaj Finserv Ltd ("BFL").
The board has unanimously approved the proposed demerger of the undertakings of the Company as above, with effect from the closing hours of March 31, 2007, the appointed date.
Read more in The Economic Times article.
It includes demerger of the two and three wheeler manufacturing undertaking, its strategic businesses comprising the generation of wind-energy using wind-farms, the insurance business conducted through its joint ventures Bajaj Allianz Life Insurance Company Ltd and Bajaj Allianz General Insurance Company Ltd, financial products distribution business conducted through Bajaj Allianz Financial Distributors Ltd and interests in retail-consumer finance business conducted by Bajaj Auto Finance Ltd. to two newly incorporated subsidiaries, Bajaj Holdings and Investment Ltd ("BHIL") and Bajaj Finserv Ltd ("BFL").
The board has unanimously approved the proposed demerger of the undertakings of the Company as above, with effect from the closing hours of March 31, 2007, the appointed date.
Read more in The Economic Times article.
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