The demerger process of Bajaj Auto Ltd (BAL), the country's second-biggest motorcycle maker, has reached the last leg with its shareholders and unsecured creditors approving the move at a meeting on Saturday.
The company said in a statement that the scheme of arrangement between Bajaj Auto Ltd, Bajaj Holdings and Investments and Bajaj Finserv was approved by its shareholders and unsecured creditors.
BAL would now file a petition before the Bombay High Court seeking approval for the demerger process.
Earlier this May, the company's board approved a demerger scheme with restrospective effect from March 31. Under the scheme, BAL's businesses, including auto manufacturing, wind energy, insurance and financial services, would be demerged into two newly incorporated subsidiaries -- Bajaj Holdings and Investment Ltd (BHIL) and Bajaj Finserv Ltd (BFL).
The manufacturing business would vest in BHIL and other strategic businesses would vest in BFL.
As part of the restructuring, BHIL would be renamed "Bajaj Auto Ltd" and the existing Bajaj Auto Ltd would be renamed as "Bajaj Holdings and Investment Ltd".
After the demerger, for each share of Bajaj Auto, the shareholders would continue to hold one share of the company with face value of Rs 10. They would also be allotted one BHIL share of Rs 10 face value and one BFL share of Rs 5 face value.