Bajaj Holdings & Investment becomes major stakeholder in Maharashtra Scooters

Maharashtra Scooters a joint sector public limited company, which is promoted by the Western Maharashtra Development Corporation (WMDC), a state owned undertaking and Bajaj Holdings & Investment (BHIL) (erstwhile Bajaj Auto), has now acquired 27 percent WMDC stake, making it the largest shareholder with 51 percent stake.

Maharashtra Scooters, which was incorporated on June 11, 1975, as a joint sector company promoted by erstwhile Bajaj Auto and WMDC. The company started manufacturing geared scooters from August 13, 1976, in technical know-how / collaboration with erstwhile Bajaj Auto. With the gradual shift in consumer preferences from geared scooters to the motorcycles, the company discontinued production of geared scooters effective from April 1, 2006. At present, the company manufactures pressure die casting dies, jigs and fixtures, primarily meant for two and three - wheeler industry.

In 2003, having achieved the broad objectives of the joint sector project, WMDC had offered to sell its 27 percent shareholding in MSL and Bajaj Holdings & Investment had confirmed its willingness to purchase these shares. Since the partners could not agree on a price, the price at which the shares were to be sold had been jointly referred to a sole Arbitrator, Justice Arvind V Savant (Retd). The award of the arbitrator dated January 14, 2006 valued the share price of MSL at Rs 151.63 per share as the rate at which 3,085,712 equity shares of MSL held by WMDC were to be sold to the company.

Earlier this year, BHIL made the necessary payment to WMDC by way of cheques on January 2019. And yesterday, WMDC transferred its 27 percent stake in MSL, BHIL now holds 51 percent shares, making MSL a subsidiary of BHIL with effect from June 17, 2019.

Also read: Uber to deploy Bajaj Qute in Bangalore