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Bajaj Auto to become the majority owner of the global KTM business through BAIHBV

Stocks
2 min Read May 26, 2025
Bajaj Auto Expands KTM Stake (1)
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Bajaj Auto is set to become the majority owner of KTM AG through its Netherlands-based arm BAIHBV, with an €800 million (₹7,765 crores) investment.

Bajaj Auto Limited is set to take majority control of Austrian motorcycle maker KTM AG through its wholly-owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV), in a significant move that strengthens its global presence in the premium and sports motorcycle segment.

The strategic acquisition marks Bajaj Auto's transition from a minority stakeholder to a majority owner and is aimed at supporting KTM's financial recovery while expanding Bajaj's international footprint.

€800 million commitment to support KTM's restructuring

The company announced a total investment commitment of €800 million (approximately ₹7,765 crores) to stabilise KTM's operations and support a court-approved debt restructuring programme. The funding breakdown includes:

  • €450 million (₹4,365 crores) as a secured term loan to KTM AG

  • €150 million (₹1,455 crores) via convertible bonds in Pierer Bajaj AG (PBAG)

  • €200 million (₹1,945 crores) already infused as shareholder debt

The initiative is designed to provide working capital and meet a court-imposed deadline of  May 23, 2025, by which 30% of creditor claims must be settled to avoid insolvency proceedings for KTM and its subsidiaries.

Regulatory approval pending for PBAG control

Bajaj Auto is also seeking regulatory approval in Austria to acquire a controlling interest in PBAG, the parent company of Pierer Mobility AG, which in turn owns KTM AG. Bajaj Auto currently holds an indirect 37.5% stake in KTM through its holdings in PBAG and Pierer Mobility.

The board of Bajaj Auto has approved a resolution to seek post-facto shareholder approval for the related-party transactions via a postal ballot in compliance with Securities and Exchange Board of India (SEBI) regulations.

A strategic milestone in global expansion

Bajaj Auto has described this development as a milestone in its international strategy. Bajaj Auto and KTM are already collaborating on product development in India, and the new ownership structure is set to strengthen this partnership and support KTM's long-term success..

At 11:00 AM on May 22, 2025,  the shares of Bajaj Auto were trading 2.1% higher at ₹9,362.50 per share as compared to the previous close of ₹9,172.65 per share on the National Stock Exchange (NSE).