Bajaj Auto Limited

Bajaj Auto will hold a meeting of the Board of Directors of the Company on 22 May 2025.Powered by Capital Market - Live

In a significant move underscoring its commitment to its long-term partnership with KTM and recognising the opportunity in the exciting world of premium/sports motorcycles given the brand's preeminent position, Bajaj Auto, through its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIHBV), intends to take control of the KTM business that is headquartered in Austria, subject to necessary regulatory approvals. With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company, whilst it continues to accelerate the thriving KTM business that is run out of India under the joint development program, where it develops, makes and sells in India as well as exports to 80 countries across the KTM network. Simultaneously, BAIHBV has arranged a debt funding package of '800 million to enable the continuity of the KTM business by paying off the approved quota to the creditors in furtherance of KTM's debt restructuring with the approval of the competent Court in Austria and infusing funds into the company to revive its operations and working capital cycle. Of this total '800 million debt package, '200 million has already been infused into the company so far and the balance '600 million is being done now. This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage, positions Bajaj Auto as a driving force in shaping the future of one of world's most admired high performance motorcycle companies. Existing Structure ' Bajaj Auto has a wholly owned subsidiary in Netherlands called Bajaj Auto International Holdings BV (BAIHBV). ' BAIHBV holds a 49.9% stake in its associate, i.e., Pierer Bajaj AG (PBAG) in Austria. The remaining controlling stake in PBAG is held by Pierer Industrie AG, owned by entrepreneur Stefan Pierer. ' PBAG holds ~75% stake in its listed subsidiary, Pierer Mobility AG (PMAG). ' PMAG is the holding company of KTM AG (KTM Business), the leading manufacturer of offroad and street motorcycles marketed under the marquee brands of KTM, Husqvarna and GASGAS. ' Bajaj effectively holds ~37.5% in PMAG/KTM, through the above chain, prior to this transaction.  KTM's Restructuring Process In November 2024, KTM AG and its subsidiaries, KTM Components GmbH and KTM F&E GmbH entered into a self administrative restructuring process, prompted by acute liquidity challenges that could not service the spiralling debt and working capital constraints that stifled routine business operations. Key milestones in the process include: ' On November 28, 2024, KTM AG applies for the initiation of judicial restructuring proceedings with self administration over the assets of KTM AG and its two subsidiaries with an aim to agree a reorganization plan with the creditors within 90 days. ' On February 25, 2025, the creditors accepted the restructuring plan submitted by KTM AG. This plan provided for creditors to receive a cash quota of 30% of their claims in the form of a one-time payment to be deposited with the restructuring Administrator by May 23, 2025.  ' In the event that the liquidity is not made available to and presented before the Administrator/Court latest by May 23, 2025, as per the law in Austria, the three entities are taken out of self-administration and moved irrevocably into an insolvency process.  ' On sighting of the requisite liquidity in the escrow accounts and confirmation by the Administrator, the Court will confirm the restructuring plan by mid-June 2025 after offering a permissible objection period, post which the quota payment will be released to the creditors and the restructuring proceedings of KTM AG and its subsidiaries will be concluded with legally binding orders. To address the KTM business' acute liquidity challenges and enable a structured revival of the brand that has a strong heritage and acclaimed position worldwide, Bajaj Auto outlines a set of strategic interventions. The proposed equity acquisition by Bajaj of a controlling stake in PBAG and therefore, in PMAG/KTM (upon receipt of regulatory approvals) after exploring various other alternatives until recently, is a critical step in realigning governance to restore confidence among stakeholders, setting a path for operational restructuring of the business and creating flexibility for potential partnerships. The debt package totalling '800 million seeks to address liquidity needs to meet creditor obligations pursuant to the approved restructuring plan and fund restart of operations. Equity Ownership: Bajaj Auto intends to acquire a sole controlling stake in PBAG. The equity ownership realignment and change of control will, however, be brought into effect only after regulatory clearances.  A Pierer group company entered into Loan and Share Pledge Agreements with Dabepo Holding GmbH in December 2024 for an amount, which along with interest and costs adds up to '80 million. Bajaj through BAIHBV has taken over the commitment under the aforesaid Loan and Share Pledge Agreements from Dabepo Holding GmbH, to prevent the threatened foreclosure of this loan which could impede the planned restructuring and ramp up of the KTM business. This loan has been covered through security that has been provided by the Pierer Group. It is expected that the full consideration for the eventual share transfer will be settled within the range of this loan amount.  In connection with the planned change of control, BAIHBV intends to invoke the restructuring privilege provided for under the Austrian Takeover Act applicable to investments for the benefit of a distressed company.  A further intimation on the transfer of Pierer's equity ownership and change of control will be made in the future once the necessary regulatory approvals are obtained. Debt Package:  I. '200 million cash already infused as shareholder debt to maintain continuity and revive operations  a. Funded in four tranches of '50 million each via Convertible Bonds/Loans, this was deployed in a phased manner across FY24 and April-May 2025, reflecting Bajaj's sustained support through the critical stage of keeping the KTM business going through the self-administration phase. b. Each transaction was executed under the oversight and legal framework that was set by the Administrator in Austria II. Fresh '600 million debt now to be provided to fund payment of creditors quota and associated costs -  a. '450 million as a secured term loan by BAIHBV to KTM AG b. '150 million of Convertible Bonds issued by PBAG and subscribed to by BAIHBV, that will be loaned by PBAG to PMAG, who in turn will eventually fund KTM AG to be used for the balance amount of the creditor's quota and restart costs. c. The amounts will be paid into the escrow accounts of the Administrator to the extent of the amounts due for payment towards the creditors' quota. These were funded by bank loans that were raised directly by BAIHBV in the Netherlands and investments made out of internal accruals by Bajaj Auto into BAIHBV. Requisite intimations were filed with the Stock Exchanges from time to time. The immediate next step is to secure binding restructuring orders from the Court in Austria to mark the end of the self-administration process and settle the creditors' quota. Alongside, applications are being made to the Austrian Takeover Commission, Foreign Investment Control and Merger Control Authorities, as applicable for their approval. Till such time these are received, the current control setup shall standstill and prevail. Finally, after months of stoppage, the production of bikes and the supply of parts, garments and accessories to the markets will be started. Powered by Capital Market - Live

The move aims to support KTM's ongoing restructuring and ensure its operational continuity amid financial distress. As part of the plan, BAIHBV has extended a 450 million euros (equivalent to Rs 4,365 crore) secured term loan to KTM AG and subscribed to 150 million euros (equivalent to Rs 1,455 crore) in convertible bonds issued by Pierer Bajaj AG (PBAG), bringing the total commitment to 600 million euros (equivalent to Rs 5,820 crore). This follows an earlier infusion of 200 million euros in shareholder debt, taking the overall funding to 800 million euros (approx. Rs 7,765 crore). These transactions are designed to meet a critical deadline, 23 May 2025, for settling 30% of creditor claims, as mandated by Austrian courts under KTM's approved restructuring plan. Failure to meet this deadline would push KTM and its subsidiaries into insolvency. Subject to regulatory approvals in Austria, Bajaj Auto plans to acquire controlling interest in PBAG, the parent of Pierer Mobility AG, which owns KTM AG. Currently, Bajaj indirectly holds a 37.5% stake in KTM through a layered structure involving PBAG and Pierer Mobility. The company's board has also decided to seek post-facto shareholder approval for these related-party transactions via postal ballot, in compliance with SEBI regulations. This development marks a shift in Bajaj's role from a minority investor to a strategic majority stakeholder in KTM, with plans to restructure governance, restore operations, and explore synergies under the joint development program already operating in India. Pending approvals, Bajaj Auto is expected to drive a turnaround strategy focused on operational revival, financial stability, and global brand growth for KTM. Shares of Bajaj Auto were down 1.62% at Rs 8551.15 on the BSE. Powered by Capital Market - Live

Bajaj Auto will hold a meeting of the Board of Directors of the Company on 15 May 2025.Powered by Capital Market - Live

Bajaj Auto Ltd is up for a fifth straight session in a row. The stock is quoting at Rs 8386.5, up 0.73% on the day as on 12:44 IST on the NSE. The benchmark NIFTY is down around 0.24% on the day, quoting at 25001.55. The Sensex is at 82282.55, down 0.3%. Bajaj Auto Ltd has risen around 4.6% in last one month. Meanwhile, Nifty Auto index of which Bajaj Auto Ltd is a constituent, has risen around 11.84% in last one month and is currently quoting at 23804.85, up 0.41% on the day. The volume in the stock stood at 2.45 lakh shares today, compared to the daily average of 3.64 lakh shares in last one month. The benchmark May futures contract for the stock is quoting at Rs 8421, up 0.91% on the day. Bajaj Auto Ltd is down 4.49% in last one year as compared to a 11.29% spurt in NIFTY and a 2.65% spurt in the Nifty Auto index.The PE of the stock is 28.19 based on TTM earnings ending December 24.Powered by Capital Market - Live

Bajaj Auto will hold a meeting of the Board of Directors of the Company on 29 May 2025.Powered by Capital Market - Live

While the company's 2-wheeler sales stood at 3,17,937 units (down 7% YoY), commercial vehicle sales added up to 47,873 units (up 3% YoY) during the period under review. The company's total domestic market sales and export sales for March 2025 were 2,20,615 (down 11% YoY) and 1,45,195 units (up 4% YoY), respectively. Bajaj Auto is engaged in the business of development, manufacturing, and distribution of automobiles such as motorcycles, commercial vehicles, electric two-wheelers, etc., and parts thereof. The auto major's standalone net profit increased 3.27% to Rs 2,108.73 crore on a 5.72% jump in revenue from operations to Rs 12,806.85 crore in Q3 FY25 over Q3 FY24. The scrip rose 0.39% to currently trade at Rs 8,060 on the BSE. Powered by Capital Market - Live

Bajaj Auto sold 3,65,810 units in month of April 2025 compared to 3,88,256 units in April 2024, recording a decline of 6%. Total sales comprise of domestic sales of 2,20,615 units (down 11% YoY) and exports of 1,45,195 units (up 4% YoY). The company's 2-wheeler sales stood at 3,17,937 units (down 7% YoY) while commercial vehicle sales stood at 47,873 units (up 3% YoY). Powered by Capital Market - Live

Bajaj Auto sold 3,69,823 units in month of March 2025 compared to 3,65,904 units in March 2024, recording a growth of 1%. Total sales include domestic sales of 2,21,474 units (flat growth) and exports of 1,48,349 units (up 2%). The company achieved two-wheeler sales of 3,15,732 units (up 1%) and commercial vehicle sales of 54,091 units (up 4%) during the month. Powered by Capital Market - Live

While the company's 2-wheeler sales stood at 3,15,732 units (up 1% YoY), commercial vehicle sales added up to 54,091 units (up 4% YoY) during the period under review. The company's total domestic market sales and export sales for March 2025 were 2,21,474 (0.5% YoY) and 1,48,349 units (up 2% YoY), respectively. Bajaj Auto is engaged in the business of development, manufacturing, and distribution of automobiles such as motorcycles, commercial vehicles, electric two-wheelers, etc., and parts thereof. The auto major's standalone net profit increased 3.27% to Rs 2,108.73 crore on a 5.72% jump in revenue from operations to Rs 12,806.85 crore in Q3 FY25 over Q3 FY24. The scrip fell 2.17% to currently trade at Rs 7896.30 on the BSE. Powered by Capital Market - Live