The Hindu Business Line : No intention to oust Shishir from group cos, says Rahul Bajaj

Mumbai March 12 The Chairman of Bajaj Auto, Mr Rahul Bajaj, on Monday said that it is not his intention to oust his brother Mr Shishir Bajaj from any of the family's group companies.

The equity structure in Bajaj Hindusthan and Bajaj Consumer Care was such that "we have controlling stakes there and we could have thrown out Shishir Bajaj if we had so desired, but that is not our intention," he said, on the sidelines of a CII conference in Mumbai.

This has reference to allegations by Mr Kushagra Bajaj, nephew of Mr Rahul Bajaj and CEO of Bajaj Hindusthan, that Mr Rahul Bajaj and other family members were attempting to oust him and his father, Mr Shishir Bajaj, from Bajaj Hindusthan and Bajaj Consumer Care.

Bajaj Auto recently acquired 1.9 per cent stake in sugar manufacturer Bajaj Hindusthan, a move that Mr Rahul Bajaj called a "treasury operation".

"Bajaj Auto has Rs 8,500 crore of cash and we keep buying and selling shares in the normal course of business," he said. The purchase was done at an average price of Rs 155 per share.

As of December 2006, the promoters' holding in Bajaj Hindusthan was 37.71 per cent. Of this, the largest chunk — 21.35 per cent — is owned by holding company Bachhraj & Co Pvt Ltd. Another holding company, Jamnalal Sons Pvt Ltd, holds nearly 4 per cent stake. With the public holding over 59.58 per cent, it is possible for any interested party to pick up additional stakes in the company, said analysts.

The shareholding pattern of the Bajaj family members in their holding companies such as Bachhraj, Jamnalal Sons and Bajaj Sewashram are not exactly known.

Bajaj Auto shares gained by 0.82 per cent on the BSE to close at Rs 2509.80; Bajaj Hindusthan gained by 6.11 per cent, to close at Rs 180.50.

Jamnalal & Sons, (among all the family entities and members), holds the largest chunk of 12.57 per cent stake in Bajaj Auto Ltd in which public holding is 68.25 per cent.

The dispute had culminated in an agreement in 2003 on dividing the Bajaj enterprises among the family. According to that plan, Mr Rajul Bajaj and his family members were to exit from some companies, including Bajaj Hindusthan, in return for Mr Shishir Bajaj exiting Bajaj Auto.

"We are ready to sell Bajaj Hindusthan shares at a pre-set price," Mr Rahul Bajaj said. "We are ready to fulfill the agreement (of 2003) even today or tomorrow at the agreed price."

Mr Khusagra today held firm on the charges made by him, saying his uncle Rahul's actions in the last week only reinforced the motive, said a PTI report.

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