Bajaj Auto International Exercises Call Option To Increase Stake In KTM Parent
By Ankur Chandra | Published at: Jun 4, 2025 02:31 PM IST
Pune, June 4, 2025 — Bajaj Auto Limited (BSE: 532977, NSE: BAJAJ-AUTO) announced a significant step towards expanding its international footprint as its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIH), has exercised a call option to acquire an additional 26,000 shares in Austria-based Pierer Bajaj AG (PBAG) from Pierer Industrie AG (PIAG).
This move is expected to provide Bajaj Auto a critical edge in the premium bike markets, both in India and overseas, especially Europe. The already-troubled KTM brand, widely successful in India, will be able to solidify its operations, due to this move.
Strategic Transaction Details
In a disclosure made to stock exchanges today, Bajaj Auto confirmed that BAIH has issued a formal Notice of Call Exercise to PIAG for 26,000 shares in PBAG. The transaction, valued at EUR 26.34 million (approximately INR 257 crore, based on an exchange rate of EUR 1 = INR 97.60), is subject to the receipt of necessary regulatory approvals.
Post-Transaction Shareholding
| Shareholder | Previous Stake (%) | Post-Acquisition Stake (%) |
|---|---|---|
| BAIH (Bajaj Auto subsidiary) | 49.9% | 75.9% |
| PIAG | 50.1% | 24.1% |
With this acquisition, BAIH’s stake in PBAG will rise to 75.9%, making PBAG a direct subsidiary of BAIH and, by extension, a subsidiary of Bajaj Auto Limited.
Background & Significance
This development follows a May 23, 2025, announcement in which Bajaj Auto disclosed entering into a call option agreement with PIAG and Pierer Konzerngesellschaft mbH (PIKO), allowing BAIH or its nominees the right to purchase up to 50,000 shares (representing 50% of PBAG) held by PIAG.
The partial call of 26,000 shares signals the beginning of this strategic shift, enabling Bajaj Auto to assert greater operational and strategic control over PBAG, which is expected to bolster its global two-wheeler and e-mobility ambitions. This move will make Bajaj a formidable player in the global and Indian premium/performance bike segment, with its ongoing collaboration with KTM, Husqvarna, and GASGAS, apart from a joint venture with Triumph Motors (unrelated with PIAG).
Company Statement
The update was officially received by Bajaj Auto at approximately 7:00 AM IST on June 4, 2025. The company has also confirmed that this information will be made available on its investor relations website as per SEBI’s Listing Obligations and Disclosure Requirements.
This move aligns with Bajaj Auto’s vision to strengthen its presence in the European market through PBAG, a key player in the performance motorcycle segment. With majority control, Bajaj now has a clear path to deeper integration, greater decision-making authority, and potential synergies across product development and supply chains.
REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/e6831b18-df27-4ea8-9fd9-5d9a5a70d05c.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
