Bajaj Auto Demerger Plan Gets Go Ahead

The much awaited demerger of auto giant Bajaj Auto to split into three separate companies got the green signal from the Bombay High Court on Dec 18, thus, clearing the way for Bajaj''s new journey. As per the scheme, Bajaj Auto''s various businesses would be demerged into three newly entities Bajaj Auto, Bajaj Holdings and Investment (BHIL) and Bajaj Finserv (BFL). As part of the scheme, Bajaj Holdings, which will be the new holding company, will own 30 per cent in BFL and Bajaj Auto. Bajaj Auto, which has a surplus of Rs 8,000 crore will have to do away with large part of the money to Bajaj Holdings, which will get around Rs 6,000 crore. Bajaj Finserve will start off with a cash kitty of Rs 800 crore.