Maharashtra Scooters climbs 2% as Bajaj Holdings buys stake

NEW DELHI: Shares of Maharashtra Scooters climbed 2 per cent in early trade on Wednesday after Bajaj Holdings and Investment acquired 27 per cent stake in the company.

Maharashtra Scooters (MSL) the maker of the once popular Priya brand of scooters, has become a subsidiary of Bajaj Holdings and Investment (BHIL) following the Western Maharashtra Development Corporations (WMDC) transferring its 27 per cent stake in MSL to the company after a protracted legal battle.

"WMDC has transferred its 27 per cent stake in MSL to the Bajaj Holdings and Investment Ltd (BHIL) on June 17. With this, the company now holds 51 per cent shares in MSL, thereby making it a subsidiary of Bajaj Holdings," MSL said in a BSE filing.


Incorporated in June 1975 as a joint venture between then Bajaj Auto (BAL) and the state-run WMDC Ltd to manufacture of geared scooters in collaboration with erstwhile BAL, it stopped production from April 2006, three-decades after producing the first scooter, amid a gradual shift in consumer preferences from geared scooters to the motorcycles.

Shares of MSL closed 0.61 per cent down at Rs 4,417 on BSE.