Glossary Background

Holding Company

A holding company is a parent entity that owns a stake in one or more companies, focusing on holding financial securities—usually equity—rather than producing goods or services itself. Its subsidiaries handle operational activities, while the holding company manages investments and oversight. For instance, Bajaj Holdings & Investment Ltd. acts as a holding company, The Co. holds stake in both Bajaj Auto Ltd. and Bajaj Finserv Ltd.