The shares of Bajaj Auto Limited were trading at ₹8,458 up by ₹11.05 or 0.13 per cent on the NSE today at 11.26 am.
Bajaj Auto Limited announced yesterday that its wholly owned Dutch subsidiary, Bajaj Auto International Holdings BV (BAIH BV), has provided a €50 million loan (approximately ₹455.56 crore) to Pierer Bajaj AG (PBAG) on February 24, 2025.
The loan is part of a larger approved investment of up to €150 million and will ultimately help finance the operations of KTM AG, a leading European motorcycle manufacturer currently undergoing restructuring. BAIH BV holds a 49.9 per cent stake in PBAG, which in turn owns 74.94 per cent of PIERER Mobility AG (PMAG), the holding company of premium motorcycle brands KTM, GASGAS, and Husqvarna.
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According to the regulatory filing, the three-year shareholder loan was executed at arm’s length terms with an early repayment option. The transaction was approved by Bajaj Auto’s Audit Committee and falls within the framework defined by the Administrator overseeing KTM AG’s restructuring in Austria.
The company specified that the loan’s utilization is subject to certain conditions precedent, and if these conditions are not fulfilled, the amount must be immediately repaid to BAIH BV.
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Rajiv Bajaj, Promoter and Managing Director & CEO of Bajaj Auto, also serves on the Supervisory Board of PBAG.
