Bajaj sold most of its shares in Force Motors after being together for more than 50 years. Between 9th of June and the 5th of August, Bajaj Holdings sold about three-fourth of its share in Force Motors.
Before selling, Bajaj had 16 percent stake in Force Motors, which was controlled by the Bajaj Group.
The Chairman and Managing Director of Bajaj group, Niraj Bajaj, confirmed the sale of shares. He said they fetched a good price and there was no particular reason given as to why they sold shares.
Bajaj Holdings sold 16.56 lakh of 21 lakh shares it had in Force Motors for between INR 436 and INR 592 per share, fetching it about INR 91 crore.
Deven Choksey, the Managing Director of KR Choksey Share Brokers said that Bajaj could invest the money in something like a public transport four-wheeler or they must have just got a good deal to buy a product.
The Founder of Force Motors, NK Firodia had sold a controlling stake in the company to Bajaj group and renamed it Bajaj Tempo. In the year 2001, Daimler Motors, owned 16 percent stake in Bajaj Tempo, then it sold its stake to the Firodia family, giving them back control. The brand Tempo, which belonged to Daimler, gradually phased out and the company was named Force Motors.
Bajaj Auto owned 24 percent stake in the company. Niraj Bajaj said since we have no management say in the company, it was normal for them to change the name.
Despite issues about the name, the relation between Rajiv Bajaj, Managing Director of Bajaj and Abhay Firodia, Chairman of Force Motors is still very good and strong.