Shishir Bajaj hikes his stake in Bajaj Hindusthan

By Our Corporate Bureau | 28 Sep 2007

The newest chapter in the Bajaj family feud has Shishir Bajaj strengthening his control over Bajaj Hindusthan, the country's largest private sugar company. Shishir has gone on the offensive, buying an additional 4.75 per cent stake in the company. Brother Rahul Bajaj's camp had earlier this year hiked its stake in the company.

Shishir bought 6.72 million shares (representing a 4.75 per cent stake) between 19 and 26 September. The purchase should have cost him around Rs 115 to 125 crore ($29 million to $31 million).

Earlier, he held less than a 1 per cent stake in Bajaj Hindusthan, but controls the management. His son, Kushagra Bajaj, is the joint managing director of the company. The bulk of the promoters' holding of nearly 46 per cent is held by investment firm Bachhraj & Company, in which all the family scions have a stake.

Shishir has been locked in a battle with brother Rahul and their three cousins — Shekhar, Madhur and Niraj — over the settlement of family assets. On Thursday 27 September, Rahul and Shishir Bajaj decided to terminate a family settlement agreement after prolonged peace talks.

Industry sources said with the termination of the previous settlement agreement, both the parties would now try to strengthen their control in the group companies, including flagship Bajaj Auto.