Bajaj has hiked its stake in KTM Power Sports, Europe’s second-largest power sports bike manufacturer 25% to 30%. Bajaj is hiking its stake in KTM to make the most of “low valuations”.According to Bajaj Auto managing director Rajiv Bajaj the stake hike in KTM shall be completed within 6-8 weeks. “We have reached an agreement to increase stake in KTM. At this juncture, it won’t be appropriate for me to talk about the valuations,” added Mr Bajaj.
Along with the KTM promoters, Bajaj will infuse fresh capital into Austria-based KTM After the preferential allotment of new shares, the KTM promoters will remain the largest shareholder with around 46% in the European company, followed by Bajaj Auto which will pump in around Rs 100 cr for the latest round of stake hike. It’s happening at a time when the duo is working to roll out the high-powered KTM bikes in India.
Till date, Bajaj Auto has invested around Rs 800 cr for its shareholding in KTM. “The prototypes are ready and we will be launching the KTM bikes in India by next year,” said Mr Bajaj.