Bajaj Auto shares in focus as company to infuse ₹1,364 crore in Netherlands-based arm; key details to know

The company said its board has approved an investment of up to Euro 150 million (₹1,364 crore) in its wholly owned arm, Bajaj Auto International Holdings BV, Netherlands, to fund the needs of the latter towards investment opportunities.

The board of directors at its meeting held on Friday has accorded approval to invest funds up to Euro 150 million in Bajaj Auto International Holdings BV, Netherlands (BAIH BV), the company said in a regulatory filing.

The investment could be either in the form of equity capital, preference capital, or a loan—convertible or otherwise, as may be determined in due course, in one or more tranches, it added.

The capital infusion will be made in one or more tranches depending on the fund requirements up to March 31, 2026, the company said.

BAIH BV is a wholly-owned subsidiary of the company and is engaged in the business of investment.

"The additional capital infusion by the company is to fund the needs of BAIH BV towards investment opportunities," the filing said, adding necessary approval for the additional investment in BAIH BV, which is a foreign subsidiary has been obtained from the Reserve Bank of India.

Although the company did not elaborate on the "investment opportunities," the development comes at a time when Bajaj Auto is heavily linked with the possibility of increasing its stake in the financially stressed KTM AG to bail out the Austrian bikemaker that has been undergoing a judicial restructuring.

Bajaj Auto Q3 and share price trend

Bajaj Auto's consolidated net profit increased by 8% to ₹2,196 crore for the third quarter ended December 31, 2024 (Q3 FY25), on the back of robust exports.

The company had reported a net profit of ₹2,033 crore in the October-December quarter of last fiscal.

Total revenue from operations was at ₹13,169 crore for the third quarter compared with ₹12,165 crore in the year-ago period, Bajaj Auto said in a regulatory filing.

Shares of Bajaj Auto have gained just 0.67% in the past 12 months. In the past six months, the stock price has fallen over 18%.