Bajaj Auto ups stake in Bajaj Hindusthan

The Bajaj family feud has taken another turn with Rahul Bajaj's Bajaj Auto and its associates increasing stake in Bajaj Hindusthan.

Bajaj Hindusthan, run by Rahul's estranged younger brother Shishir and his son Kushagra, is in the news because of a controversy over the distribution of assets among the family members.

In a notice to the stock exchanges, Bajaj Hindusthan today said Bajaj Auto and persons acting in concert had increased their stake from 37.71 per cent to 39.87 per cent during February 14 to March 21.Kushagra Bajaj had said on March 11 Bajaj Auto picked up 1.9 per cent stake in Bajaj Hindusthan. It means Bajaj Auto scaled up holding in the sugar company by 0.2 per cent during March 12 to March 21.

"This is part of our treasury operations," a Rahul Bajaj family member told Business Standard.

"Bajaj Hindusthan is doing well and we think it is a good buy at this rate," he added. Kushagra declined to comment.

Corporate analysts say this could be a move on the part of the Rahul family members to bring Shishir and Kushagra to the negotiating table.

The fresh spat between the family members came to the light when Kushagra went to the Company Law Board (CLB) seeking a stay on the move to induct additional directors on the boards of two investment companies namely Bajaj Sevasharm and Jamnalal Bajaj, which hold all assets of the Bajaj group. He was granted the stay. The matter will come up for hearing on May 28.