Bajaj demerger

During the FYit sold approx. Note these nomenclatures carefully since these will be used throughout the article. It became a public limited company in Indexation of the capital gains: Accounting treatment is different for tax purposes.

Bajaj Auto demerger is complete

In FYit sold approximately 3. As it will ensure continuity of jobs for all its permanent employees. Consequently, shareholders of the erstwhile BAL will receive shares of the demerged new companies as per the provisions of the demerger.

Demystifying the Bajaj Auto demerger

Consequence of the demerger The existing shareholders of BAL will get one share each in the resulting companies for every share that they held in BAL Tax impact of the Bajaj demerger As per the Income Tax Act, a transaction of demerger per Bajaj demerger has no tax implication on the shareholders.

The indexation will start from the date of allotment of the new shares and not from the date of acquisition of the original BAL.

Bajaj achieved this with the cc and cc Pulsar, giving Indians the first taste of performance biking.

Bajaj Auto

Bajaj may be able to squeeze the assets of the demerge unit to generate profits by infusion of technology and working capital. All identifiable assets acquired and liabilities assumed pertaining to demerged undertaking vested in it shall be recorded at their acquisition date fair values.

But, even non-shareholders may find the discussion useful, as the principles behind any demerger remain the same. Once again, BAL is the demerged company and the new companies whose shares you will receive are the resulting companies. So, refund of taxes already paid since FY will support the working of the division.

Relevance of indexation is only for working out the capital gain amount if the same has to be set off against capital loss. Boxer motorcycle is the largest selling single brand in Africa. It was agreed that Bajaj Tempo would gradually phase out the use of the "Tempo" brand name, as it still belonged to Mercedes-Benz.

To find out whether or not shares in the Resulting Companies are long-term or not, the holding period of the original BAL shares will be included in the period of holding of the new shares 2.

Hence, when the shareholders of BAL are allotted the new shares in each of the three companies, there would be absolutely no tax implication whatsoever. Motorcycles manufactured by Bajaj Auto Company[ edit ] Bajaj is the first Indian two-wheeler manufacturer to deliver 4-stroke commuter motorcycles with sporty performance for the Indian market, which was otherwise dominated mostly by mileage-based products from Hero Honda and TVS Motors.

The record date for the demerger is March 25, Demystifying the Bajaj Auto demerger - Readers may be aware that Bajaj Auto Ltd (BAL) has been demerged. Consequently, shareholders of the erstwhile BAL. Corporate Bajaj Finserv > Our Journey Our Journey Bajaj Finserv was formed in April as a result of its demerger from Bajaj Auto Limited as a separate entity to focus purely on the financial services business of the group.

Bajaj Demerger Essay Demerger and Slump Sale 57% 4% ICICI Bank 26% Focus on core competencies – Bajaj Auto Split Mechanics Bajaj Auto incorporated two wholly owned subsidiaries & pre capitalized them to the extent required: Bajaj Holdings and Investment - Rs cr (4. Bajaj Finserv was formed in April as a result of its demerger from Bajaj Auto Limited to further the Group’s interests in financial services.

M&A CRITIQUE

This demerger enabled Bajaj Finserv to independently run the core businesses of Lending, Insurance and Wealth Advisory. The demerger was a three-step process as follows: In the first phase, L&T would hive off the cement business into a separate company, Ultra Tech CemCo, where it will hold 20 per cent.

The balance 80 per cent will be held by the existing L&T shareholders proportionately.

LISTING OF GDRs Pursuant to the Scheme of Demerger, the GDR programs for Bajaj Auto Limited (BAL) and Bajaj Finserv Limited (BFS) have got established on 21 August Deutsche Bank has been appointed as Depository Bank for the Regulation S .

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Bajaj demerger
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