Shares of Bajaj Auto, a leading manufacturer of motorcycles, three-wheelers, and electric two-wheelers, will be in focus on Monday, February 24, after the company received board approval to invest up to €150 million (₹1,364 crore) in its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIH BV).
According to a regulatory filing, the capital infusion aims to support BAIH BV’s investment needs and will be carried out in one or more tranches until March 31, 2026. The investment could take the form of equity, preference capital, or a convertible/non-convertible loan. The company has secured approval from the Reserve Bank of India (RBI) for the foreign investment.
While Bajaj Auto has not disclosed specific investment targets, the move comes amid speculation about increasing its stake in KTM AG, the Austrian bikemaker currently undergoing judicial restructuring.
Bajaj Auto’s Q3 Performance & Stock Trend
For Q3 FY25 (October-December 2024), Bajaj Auto reported an 8% YoY increase in consolidated net profit to ₹2,196 crore, driven by strong exports. Revenue from operations rose to ₹13,169 crore, compared to ₹12,165 crore in the same period last year.
Despite this, Bajaj Auto’s stock performance has been underwhelming. Over the past 12 months, shares have gained only 0.67%, while in the last six months, the stock has declined by over 18%. Investors will closely watch how the fresh investment influences Bajaj Auto’s financials and strategic direction.
