CCI approves additional 16.57% stake acquisition of Mukund Ltd by Bajaj Group companies

The Competition Commission of India (CCI) has approved the acquisition of up to 16.57 per cent equity shareholding of Mukand Limited by Bajaj Group entities on Tuesday, in addition to the existing stake of around 57.70 per cent.

The Ministry of Corporate Affairs in a press statement said, “The CCI approves acquisition by Bajaj Sevashram Private Limited (BSPL), Bachhraj & Company Private Limited (BCOPL), Bachhraj Factories Private Limited (BFPL) and Sanraj Nayan Investments Private Limited (SNIPL) (collectively referred to as ‘Acquirers’) of Mukand Limited (Target) under Section 31(1) of the Competition Act, 2002, today.”

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The statement further reads, " The proposed combination envisages the acquisition of up to 16.57 per cent of the equity share capital of the target by the acquirers, who are all part of the Bajaj Group and from the sellers, who are also the co-promoters of the target along with the Bajaj Group.”

The acquisition is in addition to around 57.7 per cent of the issued and paid-up equity share capital of ML presently held by the Bajaj Group, the ministry said on quoting CCI.

Except for BCOPL, which is a registered non-banking finance company (NBFC) with the Reserve Bank of India, all other three — BSPL, BFPL and SNIPL are unregistered core investment companies. 

The acquirers are investment and lending companies and are not engaged in the manufacturing or trading of any goods, the release said.

Mukand Limited is engaged in the business of manufacturing, marketing, exporting distribution and selling, etc. of specialty steel long products and heavy machinery.  

The shares of Bajaj Finance and Bajaj Finserve each declined by around 1 per cent to Rs 5938 per share and 12591 per share on the BSE Tuesday, While Mukand Limited’s shares slumped by near 4 per cent to Rs 137.5 per share as compared to 0.68 per cent fall in the BSE Sensex.