Bajaj Auto board provides nod to infuse ₹1,364 crore in Netherlands-based arm, inventory down 14% in six months

Bajaj Auto Ltd on Friday mentioned its board has authorized an funding of as much as Euro 150 million ( ₹1,364 crore) in its wholly-owned arm, Bajaj Auto Worldwide Holdings BV, Netherlands, to fund the wants of the latter in direction of funding alternatives.

The board of administrators at its assembly held on Friday have accorded approval to speculate funds as much as Euro 150 million in Bajaj Auto Worldwide Holdings BV, Netherlands (BAIH BV), the corporate mentioned in a regulatory submitting.

The funding might be both within the type of fairness capital, choice capital, mortgage — convertible or in any other case, as could also be decided within the due course, in a number of tranches, it added.

The capital infusion shall be made in a number of tranches relying on the fund necessities as much as March 31, 2026, the corporate mentioned.

BAIH BV is a wholly-owned subsidiary of the corporate and is engaged within the enterprise of funding.

“The extra capital infusion by the corporate is to fund the wants of BAIH BV in direction of funding alternatives,” the submitting mentioned, including needed approval for the extra funding in BAIH BV, which is a overseas subsidiary has been obtained from the Reserve Financial institution of India.

Though the corporate didn’t elaborate the “funding alternatives”, the event comes at a time when Bajaj Auto is closely linked with the potential for rising its stake within the financially harassed KTM AG to bail out the Austrian bikemaker that has been present process a judicial restructuring.

Bajaj Auto by way of BAIH BV holds a 49.9 per cent stake in its affiliate – – Pierer Bajaj AG (PBAG) in Austria. The remaining controlling stake in PBAG is held by Pierer Industrie AG.

PBAG holds an almost 75 per cent stake in its subsidiary, Pierer Mobility AG (PMAG), the holding firm of KTM AG.

Other than being a component fairness proprietor, Bajaj Auto can also be a strategic associate for KTM because it develops and manufactures merchandise (below 400cc) for India and exports to abroad markets.

The enterprise in India is managed by Bajaj Auto whereas export geographies are managed largely by KTM AG and partly by Bajaj Auto.

Final yr, KTM acknowledged that the judicial restructuring of its holding agency Pierer Mobility AG, had no influence on enterprise associated to merchandise co-developed with Bajaj Auto for the Indian home market and choose export markets.

Nonetheless, it impacted the enterprise of Pierer Mobility AG/KTM AG that’s run out of Austria, together with exports from Austria, India and China to its key markets within the US and Europe.