Bajaj to buy Govt stake in Maharashtra Scooters

While the company has agreed to purchase the same, its price, however, is yet to be determined by the arbitrator, BAL informed the stock exchange here on Monday.

BAL and WMDC, the joint promoters of MSL, have referred the matter to an arbitrator to settle the price and the matter was currently being arbitrated, it said.

Currently, Bajaj Auto holds 24 per cent stake in MSL, while the balance 49 per cent is held by retail investors. For the year ended March 2004, the company made a profit of Rs 6.2 crore on a revenue of Rs 331 crore. Its sales have crashed from Rs 103 crore recorded in March 31, 2002 as the new generation of customers are preferring to buy more fuel-efficient motorcycles than scooters.

A section of minority shareholders had objected to the price offered by the Bajajs. The loss-making company is currently trading at Rs 126, while the Bajajs had offered only Rs 50 for MSL shares in 2002. In 2003, BAL revised a the offer to Rs 75. A previous valuation by Crisil had pegged the MSL scrip at above Rs 200, while more recently ICRA at the behest of minority shareholders had established the value of the company at Rs 425. Bajaj Auto officials have refrained from comments on the minority shareholders demand saying the matter is sub-judice.