Shishir ups stake in Bajaj Hindusthan

The Bajaj family feud has taken a new twist with Shishir Bajaj strengthening his control over Bajaj Hindusthan, the country's largest sugar company.

The warring Bajaj brothers, Rahul and Shishir, had yesterday decided to terminate a family settlement agreement after prolonged peace talks.

Amidst the possibility of a fresh battle over the division of family assets, Shishir has gone on an offensive by buying an additional 4.75 per cent stake in the company in which the opposition camp of brother Rahul Bajaj had also hiked the stake earlier this year.

Shishir bought 6.72 million shares (representing a 4.75 per cent stake) between September 19 and September 26. At yesterday's close of Rs 189.95, the purchase should have cost him around Rs 125 crore.

Shishir earlier held less than 1 per cent stake in Bajaj Hindusthan, but controls the management. His son, Kushagra Bajaj, is the joint MD of the company.

The bulk of the promoters' holding of nearly 46 per cent is through an investment vehicle, Bachhraj & Company, in which all the family scions have a stake.

The company's share price closed nearly 10 per cent down on the BSE today at Rs 170.35.

Shishir has been locked in a battle with Rahul and their three cousins ""Shekhar, Madhur and Niraj "" over the settlement of family assets.

Industry sources said with the termination of the previous settlement agreement, both the parties would now try to strengthen their control in the group companies, including the flagship Bajaj Auto.