Force Motors on a new high
Force Motors has been hitting a new high consistently since 12th August and today too, the stock hit a new high at Rs.762.90 and the stock remains strongly in the green.
The stock has been hitting new highs, reacting to the stake sale by the Bajaj Auto group and the management of Force Motors buying up this stake. As at end of Q1FY15, the Bajaj group – Bajaj Holdings, Bachchraj & Co and Jamnalal Sons held 23% stake in Force and they have been selling stake since then. Bajaj Holdings sold off its last over 5.3 lakh shares held during last week and though not confirmed, news is that the promoters of Force purchased these shares. This marks the end of a relationship which has began before India’s independence, which later soured due to infighting between the Bajaj’s and Foridia’s. Since then these two separated and the stakes remained as a legacy of the past. This sale just marks the end of that past.
The market is also enthused by the fact that the promoters of Force, hold some 3.5% stake in Bajaj Auto through Jaya Hind Investments, which is today worth over Rs.2000 crore at current market price. There is hope of the company monetizing this though there is no word about stake sale by the Firodia’s.