• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Jayanta Mallick

Kolkata , June 2

THE Maharashtra Scooters stock began moving up again on the hopes that the arbitration process for determining price for the Western Maharashtra Development Corporation's 27 per cent stake in the company, to be bought out by Bajaj Auto, would end this month.

The stock closed marginally up at Rs 207 on Thursday, close to its 52-week high of Rs 209.75. According to sources close to the arbitration proceeding, (retd) Justice Mr Arvind Sawant was appointed by the partners as the arbiter in November 2003 with a 60-day timeframe to reach the valuation. The reference date for valuing the assets/investments of the scarcely operational company sought by WBMDC was December 31, 2003.

According to the majority partner's valuation estimate, taking into account the immovable property valuation and investments in shares, it was at around Rs 486 crore or Rs 425 per share of MSL. The delay in completing the arbitration has further complicated the matters as valuations of investments - particularly in Bajaj Auto (33.87 lakh shares), Bajaj Hindusthan (12.55 lakh shares) and Bajaj Auto Finance (10.24 lakh shares) - have gone through the roof.

According to market sources, minority shareholders were also expecting an open offer after the proposed buy-out in MSL as in case of Bihar Caustic & Chemicals Ltd, erstwhile joint venture between the Government of Bihar and Hindalco - the latter was asked by the SEBI to make an open offer after the buy-out of one of the partners on the ground of change in management control. Market sources also pointed out that the immovable property of MSL was at book value (not in sync with market value) and has also undergone a sharp change valuation in recent time.

Since December 31, 2003, the Bajaj Auto stock has appreciated by about 12 per cent, Bajaj Auto Finance counter has improved by around 140 per cent and Bajaj Hindustan stock's market valuation has appreciated by around 400 per cent, minority shareholders mentioned.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Kotak Mahindra launches contra fund

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line