Bajaj Auto shares rise over 2% on acquiring additional stake in KTM’s parent

Bajaj Auto’s wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIH BV), has subscribed to convertible bonds worth 50 million euros (approximately ₹461.6 crore) issued by Pierer Bajaj AG (PBAG) on March 31, 2025.

The move aims to support the funding requirements of bike maker KTM, a subsidiary of Pierer Mobility AG (PMAG), for the phased resumption of KTM motorcycle production.

BAIH BV subscribed to 500 bonds, each with a nominal value of 1,00,000 Euros, at an issue price of 1,00,000 Euros, totalling 50 million Euros. BAIH BV holds a 49.9% stake in PBAG, while PBAG has a 74.94% stake in PMAG. The bonds come with a conversion option, allowing holders to convert them into PBAG shares between June 1, 2025 and February 29, 2028.

The transaction aligns with Bajaj Auto’s long-term strategy of strengthening its association with KTM and expanding its footprint in the premium motorcycle segment. The funding will facilitate KTM AG’s production revival, ensuring sustained market presence. Additionally, Bajaj Auto’s Managing Director & CEO, Rajiv Bajaj, is a member of PBAG’s Supervisory Board, underlining the company’s influential role in strategic decision-making, Bajaj Auto said in an exchange filing.

The deal is classified as a related party transaction, as BAIH BV and PBAG are associated entities of Bajaj Auto Limited. However, the transaction has been executed on an arm’s uto length basis and was duly approved by the company’s Audit Committee, Bajaj Auto added.

As of 10:06 am, Bajaj Auto shares traded 1.97% higher at Rs 8,029.35, outperforming the SENSEX which was trading on a flat note.