Bajaj Corp leaves 'nomarks'
Broader markets remain weak with benchmark BSE Sensex down nearly 2% or 510 points at 27,330. But shares of Bajaj Corp are trading flat at Rs. 400 per share after it received RBI approval to hike foreign institutional investors’ holding in the company from current 24% to 49%.
FII holding in this Almond Drops hair oil and Nomarks cream maker was 15.21%, as per the September 30, 2014 stock exchange filing, while promoter holding then was 75%. However, foreign institutional holding had reached very close to the current cap of 24%, as promoters sold their 8% holding to PE firm Temasek on 25th November 2014, trimming their holding to 67%. The deal called for an increase in FII holding limit in the company, final approval for which came in from the regulator. This approval will bring greater FII attention as well as enhance liquidity on Bajaj Corp’s counter on NSE and BSE. A real shot in the arm!
Besides, with crude oil prices on a decline, company’s third quarter earnings are likely to get a substantial boost with lower input costs. Company is set to announce December quarter earnings this Friday, 9th January 2015. Thus, this week as well as the next, look very bright for the script.