The Bombay High court has approved the scheme of demerger – which splits BJAT into three entities: Bajaj Auto Limited, Bajaj Holdings and Investment Ltd and Bajaj Finserve Ltd. BJA stated in a filing with the exchange that the ‘effective date’ and ‘record date’ are yet to be fixed.
Bajaj Auto will demerge its businesses into three entities
a) Bajaj Auto Ltd. (auto businesses + Rs15bn in cash);
b) Bajaj Finserve Ltd. (windpower projects, investments in the insurance ventures, investment in Bajaj Auto Finance and Rs8bn in cash);
c) Bajaj Holdings and Investment Ltd (residual cash, investment in ICICI and 30% stake in both Bajaj Auto and Bajaj Finserve).
All current shareholders of Bajaj Auto will get 1 share each of the new businesses (for every 1 share held in Bajaj Auto).