Tuesday, December 23, 2008

Bajaj Hindusthan sweetens on truce between Bajaj family

Bajaj Hindusthan rose 4.56% to Rs 63 at 12:00 IST, on a truce between the promoter family.
The stock hit a high of Rs 64 and a low of Rs 60.50 so far during the day. The stock had a 52-week high of Rs 399.50 on 9 January 2008 and a 52-week low of Rs 38.25 on 21 November 2008.
The small-cap sugar and ethanol maker has an equity capital of Rs 14.14 crore. Face value per share is Rs 1.
Bajaj Hindusthan said in a statement that the Bajaj Auto chairman Rahul Bajaj will acquire a little more than 29.2% of the company's equity from group investment firms and other Bajaj family members at the market price as on 30 December 2008 and later transfer the stake, along with his 0.4% stake, to his brother Shishir Bajaj for zero consideration thus giving Shishir full control over the sugar firm. The company made the announcement after market hours yesterday, 22 December 2008.
After the transfer, Shishir Bajaj's stake will rise to 32.47% from 2.85% currently. Analysts expect this to be the first leg of the transaction. In the second, Shishir Bajaj is likely to exit from Bajaj Auto where is owns about 2%. This will pave the way for an end of the six-year old family dispute.
Bajaj Hindusthan reported a net loss of Rs 87.46 crore in Q4 September 2008 as against a net profit of Rs 90.54 crore in Q4 September 2007. Sales rose 7.1% to Rs 463.11 crore in Q4 September 2008 over Q4 September 2007.
Bajaj Hindusthan manufactures sugar and ethanol. The company has ten sugar plants, which are all located in the northern Indian state of Uttar Pradesh (UP).

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