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Regular-article-logo Monday, 05 May 2025

FIRODIAS SPECTATORS IN BAJAJ BREAKUP DRAMA 

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FROM SATISH JOHN Published 24.06.02, 12:00 AM
Mumbai, June 24 :    Mumbai, June 24:  Even as the estranged Bajaj scion is keen to jump the boat with his share of the family pie, the Firodias of Bajaj Tempo and Kinetic Motors -estranged partners of the Bajaj group and now arch rivals in the two-wheeler industry-are content to hold on to their stake in Bajaj Auto. Incidentally, the Firodias' stake is more than double the holding of Shishir Bajaj in Bajaj Auto, with company sources putting the stake of the two brothers-Abhay Firodia of Bajaj Tempo and Arun Firodia from Kinetic Motors-at 13.6 per cent. While Shishir Bajaj, the estranged brother of Rahul Bajaj, is expected to return today from his week-long trip abroad, the chances of reconciliation between the two brothers who are separated by nine years in age, have been virtually ruled out. Analysts say that it is only the price that the family is willing to pay that needs to be decided after Shishir returns to India on Monday night. They add that the money to buy out Shishir can be easily organised by the family. Ironically, the Firodias had not parted with even one share in the generous buyback offer announced two years ago by Bajaj Auto. They continued to retain their holdings even when Bajaj Auto announced a buyback at Rs 400 per share, while BAL shares were quoting on the bourses at half the price. Asked on the Firodias' view of the developments and their reasons for being more loyal than the king, Kinetic chairman Arun Firodia, had a cryptic reply: 'You should ask my brother Abhay on this, as he holds a bigger stake than I do.' Observers, who have keenly watched the two groups, have an explanation to this strange turn of events, where the estranged former partners remain put with their respective holdings, while a family member wants to opt out. 'It is the cross-holdings of the two groups that has prevented them from selling,' they say. It is said that Bajaj Auto controls close to 20 per cent in Bajaj Tempo. The counter holdings in each other's flagship companies have prevented the two parties from exercising the right to sell their respective stakes. A senior BSE stock broker, Kisan Ratilal Choksey said that the current imbroglio will have no impact on Bajaj Auto's performance.    
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