Bajaj Auto has informed the stock exchanges about certain significant transactions undertaken by its subsidiary, Bajaj Auto International Holdings (BAIH). These transactions include the execution of a secured term loan facility agreement between BAIH and KTM AG amounting to 450 million Euros, approximately Rs. 4,365 crore, based on an exchange rate of 1 Euro = Rs. 97. The loan proceeds will be remitted to the escrow account of the restructuring Administrator in Austria to facilitate payments to KTM’s creditors, as approved by the competent Austrian court.
In addition, BAIH has subscribed to convertible bonds worth 150 million Euros, equivalent to Rs. 1,455 crore, issued by Pierer Bajaj AG (PBAG). These transactions are part of a restructuring process for KTM. On February 25, 2025, KTM’s restructuring plan was approved by its creditors, which requires a one-time cash payment amounting to 30% of their claims to be deposited with the restructuring Administrator by May 23, 2025. Failure to meet this deadline would result in KTM moving from self-administration into a formal insolvency process under Austrian law.
The transactions were approved by Bajaj Auto’s Audit Committee and are being disclosed as per the requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, given their material nature and the involvement of the subsidiary. Bajaj Auto’s Board of Directors has also resolved to seek shareholder approval for these related party transactions through a postal ballot on a post facto basis.
The company received the information related to the facility agreement and convertible bond subscription on May 21, 2025, at around 3:00 p.m. IST. Further details have been disclosed in accordance with SEBI regulations and relevant circulars to ensure transparency and compliance.
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