Bajaj Auto Worldwide Holdings BV, a completely owned subsidiary of Bajaj Auto, has signed mortgage agreements price €566 million with JPMorgan Chase, DBS Financial institution, and Citigroup International Markets Asia. In accordance with an trade submitting on Friday, the loans are unsecured and have a one-year time period. The funds will probably be used to assist the funding car’s actions, forward of a important Could 23 deadline by which KTM should pay collectors €548 million to keep away from liquidation.
The funding marks the most recent step in a collection of interventions by Bajaj Auto to maintain KTM afloat. The Austrian bikemaker filed for chapter on November 29, 2024, after amassing billions of euros in debt, pushed by its acquisition of MV Agusta and heavy investments in its MotoGP operations. A collapse in two-wheeler demand in Europe across the identical time exacerbated the corporate’s troubles.
Bajaj steps up assist
On February 21, 2025, Bajaj Auto had infused €150 million into its funding arm, of which €50 million was prolonged as a mortgage to KTM AG to restart operations. Subsequently, KTM’s collectors permitted a restructuring plan on February 25, which mandated a money contribution of €548 million by Could 23.
KTM resumed manufacturing at its Mattighofen plant on March 17. This was adopted by two extra infusions of €50 million every from Bajaj Auto Worldwide Holdings on March 31 and April 3, issued within the type of convertible bonds. On Could 15, Bajaj Auto invested an extra €125 million into its funding arm, with €50 million instantly directed into KTM.
In whole, Bajaj Auto has dedicated €200 million to KTM because the chapter submitting.
Possession construction & outlook
KTM is held by way of a layered construction. Pierer Bajaj AG, a three way partnership between Stefan Pierer and Bajaj Auto Worldwide Holdings, owns 74.9% of Pierer Mobility AG, the Vienna-listed entity that’s KTM AG’s quick father or mother. Bajaj Auto Managing Director Rajiv Bajaj sits on the board of Pierer Bajaj AG.
KTM AG itself controls manufacturers akin to KTM, Husqvarna, and GasGas, together with the MotoGP racing workforce.
It stays unclear whether or not Bajaj Auto will search a majority stake in KTM or usher in an out of doors investor to amass Stefan Pierer’s 50.1% stake of their three way partnership. Readability is predicted when Bajaj Auto stories its fourth-quarter earnings on Could 29.
Share worth and technicals
On Friday, shares of Bajaj Auto rose 1.91% to Rs 8,487.15 on the BSE. The inventory has gained 10.4% within the final week however is down 3.8% over the previous 12 months and 11% previously six months.
Technical indicators are blended. The inventory is buying and selling above six of its eight key easy shifting averages however stays beneath its 150-day and 200-day SMAs. The 14-day Relative Energy Index stands at 64.7, suggesting it’s approaching overbought territory.
Additionally learn | Nifty prone to advance in direction of 25,200-25,800: Analysts
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t characterize the views of the Financial Occasions)
