Demerger of Bajaj Group Presented By: MBF Group 5 January 21, Key elements of the Scheme The Auto business of the company. The demerger process of Bajaj Auto Ltd (BAL), the country’s this May, the company’s board approved a demerger scheme with restrospective. The effective date of the demerger is February 20, The board of directors of the erstwhile Bajaj Auto had approved the scheme of.

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Shekhar Bajaj – Shri. The remaining assets and liabilities, including investments in group companies and balance cash and cash equivalents would be retained in the existing BAL. Staff Correspondent Auto, wind power and financial services and primary investment businesses formed Turnover crosses Rs. After the issue of new shares, the existing shareholders of BAL would hold about 70 per cent shares in the new companies in the same ratio as their current holding, with the remaining about 30 per cent being held by Bajaj Holdings and Investment Ltd.

D J Balaji Rao – Shri. Will be displayed Will not be displayed Will be displayed. The scheme, approved by the board, is subject to approvals as may be required including that of the stock exchanges, Bombay High Court, and shareholders of the company. Manish Kejriwal – Shri.

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Bajaj spins off three separate entities – BUSINESS – The Hindu

Disclaimer Back To Announcements. Niraj Bajaj – Shri.

The demerger reinforces the commitment of Bajaj Auto Ltd group to the businesses of the resulting Companies. Aauto S Mehta – Shri. The provisions of the scheme would be applicable and come into operation from closing hours of March Get instant notifications from Economic Times Allow Not now. Rahul Bajaj is the Executive Chairman – Shri.

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Bajaj Auto board approves company’s split

Rahul Bajaj, Chairman, Bajaj group, announced here at a press conference that there would be no change in the management structure of the company. Rajiv Bajaj and Shri. The auto business of the company along with all assets and liabilities, including investments in PT Demerrger Auto Indonesia and in a few vendor companies, would be transferred to BHIL.

The company’s gross profit for the year was at Rs. Rahul Bajaj, Chairman – Shri. NIFTY 50 10, 2.

BAL would now file a petition before the Bombay High Court seeking approval for the demerger process. Rahul Bajaj takes over as Non-executive Chairman and the remaining three, viz.

After the demerger, for each share of Bajaj Auto, the shareholders would continue to hold one share of the company with face value of Rs The share capital of the three Companies post demerger, after allotment of shares as aauto would be as under: Find this comment offensive?

Kantikumar R Podar – Shri. II Changes in boards with effect from effective date, i. The two new companies would be able to tap on an arm’s length basis into the cash pool of the investment company to support future growth initiatives, if required.

As part of the scheme, Bajaj Holdings and Investment Ltd which would be the new auto bajak would be renamed as Bajaj Auto Ltd and the existing Bajaj Auto Ltd would be renamed as Bajaj Holdings and Investment Ltd, which would act as the primary investment company.

Bajaj Auto unveils demerger plan

The transaction structure will also enable the new companies to tap into the cash pool of BHIL to support their future growth initiatives even while enabling BHIL to participate in the growth of the auto business and the financial services sscheme.

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Highlights of the Scheme of Demerger as well as certain changes made in the composition of the Board of the directors of the three Companies are given in the following paragraphs I Highlights of the Scheme of De-merger Bajaj Auto Ltd BAL formed two wholly owned subsidiaries, viz.

The company said in a statement that the scheme of arrangement between Bajaj Auto Ltd, Bajaj Holdings and Investments and Bajaj Finserv deemerger approved by its shareholders and unsecured creditors. In addition a total of Rs crore Rs 8 billion in cash and cash equivalents would be transferred to BFL. Choose your reason below and click on the Report button. The demerger process, which is subject to statutory and regulatory procedures, is expected to be completed by end of calendar year J N Godrej – Smt.

All shareholders in existing BAL on the record date would become shareholders in each of the new companies and would be issued shares of the two new companies in the ratio 1: The board of the company has recommended an unchanged dividend of Rs.

My Saved Articles Sign in Sign up. Republication or redistribution of PTI content, scyeme by framing or similar means, is expressly prohibited without the prior written consent. Bajaj Auto Ltd BAL at its Board meeting held on May 17, decided to demerge its undertakings into three separate entities as under: Nanoo Pamnani – Shri.

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