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Shishir sells part stake in Bajaj Auto

BS Bureaux in Mumbai

The Bajaj family drama has taken another turn. Shishir Bajaj, the estranged brother of Bajaj Auto Chairman Rahul Bajaj, is learnt to have sold part of his holding in the company to two overseas funds at Rs 505-590 a share.

While the markets were rife with speculation that Shishir Bajaj had sold his entire 6 per cent stake, sources in the Rahul Bajaj faction said he could not offload his entire stake without their consent.

Sources close to the development said the deal had been transacted in different tranches at variable rates. They added that the transaction deliberately involved two separate funds, one of which was believed to be an offshore fund of Bank of America (BankAm).

BankAm officials in India were not available for comment. Efforts to contact Shishir Bajaj at his residence also proved futile.

Sources close to the Bajaj family said they were unaware of any such transaction.

However, a source said, "Shishir Bajaj will not be able to sell his entire 6 per cent stake in Bajaj Auto without approval of other family members, because only about 1.5 per cent is in his own name and in the names of his wife and son. The balance is through privately held companies like Bajaj Sevashram (which is directly under Shishir Bajaj's control), which in turn owns Bajaj Auto shares. This amounts to about 4.5 per cent of stake in Bajaj Auto."

"In order to sell this 4.5 per cent, the privately-held companies will have to be liquidated, which will require the approval of the rest of the family members," a source said.

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