Bajaj Auto’s High-Octane Play: KTM’s Parent Now Under Indian Control

Bajaj Auto Limited is making a decisive move to cement its control over the global high-performance motorcycle brand KTM. Through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIH), the company will soon hold a commanding 75.9% stake in Pierer Bajaj AG (PBAG) following the exercise of a call option for 26,000 shares. This acquisition is a pivotal step in Bajaj’s plan to become the majority owner of KTM and its associated brands, Husqvarna and GASGAS.

 

The transaction involves a cash outlay of €50.65 million (about ₹491.3 crore) for the additional shares, at a price of €1,013 per share. Once completed, BAIH’s holding in PBAG will rise from 49.9% to 75.9%, giving Bajaj Auto substantial influence over the management and strategic direction of KTM’s parent group. The remaining shares are expected to be acquired in subsequent tranches, subject to regulatory approvals across Austria and the EU.

 

This move is part of a broader €800 million funding package arranged by Bajaj Auto to stabilize KTM’s finances, support a court-approved debt restructuring, and provide fresh working capital. Of this, €200 million has already been infused, with the balance being deployed to meet a crucial May 2025 deadline for creditor settlements.

 

The acquisition not only secures Bajaj’s leadership in the global premium motorcycle segment but also signals its long-term commitment to expanding its international footprint and fostering innovation in the EV and performance bike markets.

 

Sources: Business Standard, Outlook Business, HDFC Sky