Bajaj Auto Limited has informed the Exchange regarding Notice of Postal Ballot (through remote e-voting)
BAJAJ-AUTO · price
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Bajaj Auto has issued a postal ballot notice seeking shareholder approval (on a post-facto basis) for material related party transactions worth up to Euro 865 million (~₹8,391 crore at 1 Euro = ₹97) for the restructuring of KTM AG and acquisition of a controlling stake in Pierer Bajaj AG (PBAG). The transactions include Euro 80 million (₹776 crore) for takeover of Pierer Group loan and pledge agreements, Euro 50.65 million (₹491.3 crore) for acquiring a 50% controlling stake in PBAG via call options, Euro 700 million (₹6,790 crore) as debt funding (loans and convertible bonds) for FY 2025-26, and ~Euro 85 million (₹824.5 crore) of related interest. KTM AG entered self-administrative restructuring in Austria in November 2024 due to severe liquidity stress; Bajaj remitted funds on 22 May 2025 to meet a hard court deadline of 23 May 2025, with the Austrian court approving the restructuring plan on 16 June 2025. Post all regulatory approvals and option exercises, Bajaj will effectively hold ~75% in PMAG/KTM (up from ~37.4% currently). E-voting runs from 18 July 2025 to 16 August 2025, with results to be declared by 19 August 2025.
This is a large, strategic capital deployment that gives Bajaj Auto effective control of Europe's leading premium motorcycle group (KTM, Husqvarna, GASGAS) at an attractive valuation, protects its existing ~₹4,820 crore carrying value of KTM investment, and secures the highly profitable India KTM business (contributing ~₹925 crore to FY24 EBITDA). Shareholders should note this is a post-facto approval due to time-bound Austrian legal deadlines, and the aggregate ~₹8,391 crore exposure represents a material commitment that could weigh on near-term capital allocation flexibility but offers long-term global growth potential.