Bajaj family to buy Shah brothers' stake in Mukand: Report

Various Bajaj family holding companies, group entities, trusts and individuals own a majority stake of 58 percent in Mukand (Representative image)

The Bajaj family has decided to buy the Shah brother's stake in its struggling manufacturing joint venture Mukand.

The Shah brothers Suketu and Rajesh will exit the business, after transferring their remaining 16.5 percent stake to their partners, via block deals in the stock market, The Economic Times has reported.

The negotiations and a restructuring exercise have been in the works for months. At the current market price, the Bajaj family will have to pay Rs 353 crore for the transaction, the report said.

"This is a decision that our family arrived at some time back. It has been a long association between both sides," said Rajesh Shah, co-chairman of Mukand, as quoted by the publication. "This partnership has worked successfully for long but our next generation are unlikely to continue."

Various Bajaj family holding companies, group entities, trusts and individuals own a majority stake of 58 percent in the company, and the public shareholding is 25.65 percent, the report said citing the 2021 shareholding pattern.

After the restructuring, Mukand intends to bring down its leverage to Rs 1,000 crore by the next fiscal year.