Bajaj promoters pledge shares to repay Rs 365 cr loan
Promoters of three Bajaj Group companies -- Bajaj Auto Ltd, Bajaj Holdings & Investment and Bajaj Finserv -- have pledged their shares to repay loans up to Rs 365 crore.business Updated: Feb 10, 2009 18:21 IST
Promoters of three Bajaj Group companies -- Bajaj Auto Ltd, Bajaj Holdings & Investment and Bajaj Finserv -- have pledged their shares to repay loans up to Rs 365 crore.
In separate filings to the Bombay Stock exchange, two- and three-wheeler maker Bajaj Auto said that four of its promoters have pledged a 2.57 per cent stake in the company, while they have also pledged 3.82 per cent in Bajaj Holdings & Investment.
The group's financial services arm, Bajaj Finserv, said three of its promoters have pledged a 4.41 per cent stake.
Explaining the reasons for pledging shares by the promoters, Bajaj Finserv Ltd Managing Director Sanjiv Bajaj told PTI that it was done to repay two separate loans.
"The first loan, for Rs 300 crore, was taken at the time of the corporate debt restructuring (CDR) programme of Mukand (Iron and) Steel, in which the promoters were required to participate," he said. The CDR was undertaken in 2004.
The second transaction was done last year, when the promoters had taken a loan of Rs 65 crore for increasing their stake in group various companies.
"Promoters on a regular basis increase their stake in group firms from time to time and specially in the current environment to display confidence to the companies. A loan of Rs 65 crore was taken last December to fund the stake purchases," Bajaj said.