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New Bajaj deal may help solve family dispute

With the Bajaj group firms acquiring an additional 9.50 per cent stake, from the Unit Trust of India, in Shishir Bajaj controlled Bajaj Hundustan Ltd, the prospect of an amicable solution to the ongoing family split drama looks bright.

The Bajaj group paid Rs 7.9 crore (Rs 790 billion) to UTI.

The group companies, Bachhraj & Co and Jamnalal Sons have bought 830,000 shares at Rs 95 per share, which is around 53 per cent higher than the ruling market price.

Shares in Bajaj Hindustan closed on Wednesday at Rs 62.70 registering a rise of 10 per cent over its previous close.

According to sources close to the Bajaj family speaking on condition of anonymity, the acquisition of shares in Bajaj Hindustan provide greater control to Shishir Bajaj over the company and that may facilitate smooth stake transfer among the five members of the family at the time of settlement.

Shishir Bajaj wants to offload his stake in the group companies managed by his brother Rahul Bajaj and cousins, Shekhar, Madhur and Niraj. Shishir manages Bajaj Hindustan, Bajaj Sevashram and Ayurvedashram Pharmacy.

The deal will not affect the holding pattern of the five members of the family in Bajaj Hindustan as they also have a stake in the acquiring firms.

According to sources, the move has consent of all the five brothers and has been made on the suggestion of two mediators for an amicable solution.

The mediators -- Nationalist Congress Party chief Sharad Pawar and close family friend D S Mehta -- are still trying to reach a consensus on the terms of reference for the settlement, sources added.

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