BAL shares dip following demerger announcement

Mumbai, May 17 (UNI) Bajaj Auto shares today plunged over 10 per cent on the bourses just after the announcement of demerger of the country's second-biggest two-wheeler manufacturer.

The stock lost over Rs 282 to touch an intra-day low of Rs 2,398 at the Bombay Stock Exchange (BSE) just after the Company's board approved the demerger scheme, splitting the group into three separate entities.

Earlier, just before the announcement, the scrip surged to an intra-day high of Rs 2,747 -- 2.31 per cent over its previous close of Rs 2,680.05 on the BSE.

The Company's shares finally settled at Rs 2500.30, down Rs 179.15 or 6.71 per cent at the BSE.

Under the demerger scheme, Bajaj Auto's businesses, including auto manufacturing, wind energy, insurance and financial services, would be demerged into two new subsidiaries - Bajaj Holdings and Investment Ltd (BHIL) and Bajaj Finserv Ltd (BFL).

After the demerger, for each share of Bajaj Auto, the shareholders would continue to hold one share of the Company and would also be allotted one BHIL share and one BFL share.

Another group firm Bajaj Auto Finance's shares also fell over 7 per cent to end at Rs 433.05 down by Rs 35.85 on the BSE. The scrip had touched an intra-day low of Rs 414 earlier in the day.

UNI