Report – Bajaj Group ends association with Force Motors; sells off stake

Karthik

Karthik H,

A bit of a car freak and a bike nut, and a fan of trucks and technology too. Expect sharp stories that focus on those four fronts. As always, stay tuned to IndianAutosBlog.com for quick and unassuming updates from across the world.

In what the company terms as a ‘normal treasury transaction’, the Bajaj Group has sold off all the shares it had held in Force Motors. A total of 23 percent stake was sold over a period of little over a year.

Bajaj Discover 150 F Launch headlamp
The Bajaj Group has sold its stake in Force Motors, ending a decade-long relationship.

As of the quarter-ended June 2013, the Bajaj Group – via its companies Bajaj Holdings, Bachhraj & Co and Jamnalal Sons – held a total of 23 percent stake in Force Motors. This stake came down to 9.32 percent as of July 23 this year, to 4.04 percent at the start of August and eventually to nil as of the latest Stock Exchange disclosures.

Niraj Bajaj, director of the Bajaj Group, says that the Group only wanted to capitalise on the recent 83 percent surge in share prices of Force Motors. On the other hand, Force Motors’ stake in Bajaj Auto was worth considerably higher than Force Motors’ turnover in 2013-14. According to the BSE, the stake is valued at Rs 2,200 crore and Force Motors enjoyed a turnover of Rs 2,021 crore last year.

Force Gurkha hardtop front quarter left
Force Motors’ present stake in Bajaj Auto is worth more than Force Motors’ turnover in 2013-14.

After a bitter Court battle that lasted decades, the two groups separated. While Force Motors chose to concentrate on SUVs, light trucks & buses, Bajaj has been one of the strongest two-wheeler manufacturers in India.

[Source – Business Standard]

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Force Gurkha News & Updates

Bajaj Pulsar RS200 Red colour variant spied

Bajaj Pulsar RS200 new colour variant spotted in Pune

Bajaj Pulsar 180 Black Pack Edition

Bajaj Pulsar Black Pack Edition launched for achieving 1 crore global sales

Bajaj Pulsar NS200 ABS variant launched officially in India

2017 Bajaj Pulsar NS200 at Nepal Auto Show headlamp

Bajaj Pulsar range clocks its highest ever monthly sales in September – Report

Bajaj Pulsar NS 160 Left Side view

Bajaj Boxer, Bajaj Pulsar & Bajaj CT top India’s two-wheeler exports – Report

Bajaj Pulsar RS200 Dealer colour

Bajaj Pulsar RS200 spotted in green & orange body colours