CorporateBajaj Auto raced ahead on restructuring plans
Bajaj Auto ended at Rs 1,724, higher by Rs 81 or 4.9%, on the BSE, accompanied by a surge in volumes.
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The stock opened at Rs 1,652, which was also the day"s low, and a high of Rs 1,732.
The counter saw trading volumes of 152,019 shares as against the 2-week average of 50,930 shares.
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(Updated at 1040 am)
Bajaj Auto has raced ahead after announcing plans to exit the scooter business. The stock is trading at Rs 1,707, higher by Rs 63 or 3.8%, on the BSE. It opened at RS 1,652 and has touched a high of Rs 1,715 and a low of Rs 1,652 thus far.
The company, which sells 300 automatic scooters every month under the brand name Kristal, will stop producing the vehicle in the next three months.
The move is part of Bajaj’s new strategy to overtake Honda and become the number one motorcycle manufacturer in the world. It is the second largest two-wheeler manufacturer in India.
The company also plans to drop the brand “Bajaj” from its three-wheelers in a phased manner and call it just RE (which stands for rear engine). Brand Bajaj would be restricted to only motorcycles.