Bajaj Hindusthan climbs 5% on dispute settlement buzz

MUMBAI: Shares of sugar producer Bajaj Hindusthan rose 5 per cent on reports of the settlement of a 6-year old family dispute.

Rahul Bajaj, owner of 0.21 per cent in the company, said he will buy more than 29 per cent stake in the firm from other promotors and later transfer shares to brother, Shishir Bajaj, as part of a family settlement.

Under the original settlement plan reached in June 2003, Rahul Bajaj and his cousins agreed to sell their stake in Bajaj Hindusthan and Bajaj Consumer Care to Shishir Bajaj at an agreed price. In return, Rahul Bajaj agreed to sell his 1.8 per cent stake in Bajaj Auto. In addition, Shishir was supposed to get monetary compensation for forgoing his interest in other group companies.

But the deal fell through, the reasons for which have not been made public. Two more peace moves also failed, after which the Shishir Bajaj faction filed a case against the other Bajaj brothers for mismanagement. Shishir Bajaj also bought 4.67 per cent in the company from the market after Rahul Bajaj bought 3 per cent a few months before.

At 12:10 am, Bajaj Hindusthan shares climbed to reach its upper circuit limit of Rs 13.93 per cent, up 4.97 per cent.