i Develop Stocks Advisory

Bajaj to spin off 2-wheeler finance business from BAFL Bajaj Auto Finance Ltd (BAFL) may spin off its two-wheeler financing business as a subsidiary of Bajaj Auto after the official demerger of the group's auto and finance businesses. According to auto financing sources, the idea to separate the business from Bajaj Auto Finance was first mooted when the demerger proposal came up for talks last year. While Bajaj Auto MD Rajiv Bajaj was keen on holding the two-wheeler financing portfolio to buttress sales and use it as a competitive edge, there were concerns over whether this move would take away too much from the finance company, which is younger brother Sanjiv's turf. Sources say the proposal has now "more or less been accepted in principle". But the move will happen only after the demerger is complete. Internally, the process has already started with the separation of the management teams controlling the Bajaj Auto business within BAFL and those controlling the rest of the finance company's portfolio.