The Bombay high court has sanctioned the demerger of Bajaj Auto Ltd's automobile and financial services businesses into two separate independent entities.
While Bajaj Holdings and Investment Ltd would administer the two and three wheeler manufacturing business, Bajaj Finserv Ltd would be responsible for the company's financial services business, including insurance and auto finance.
"The high court... vide order dated December 18, 2007 received by the company on February 19, 2008 has sanctioned the scheme of arrangement between the company, Bajaj Holdings and Investment Ltd and Bajaj Finserv Ltd and their respective shareholders and creditors," the company said in a communique to the Bombay Stock Exchange.
The effective date and the record date will be intimated soon by the company after filing of the order with the office of Registrar of Companies, it added.
