Bajaj Auto has announced that its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIH BV), has subscribed to convertible bonds worth €50 million (₹468.7 crore) issued by Pierer Bajaj AG (PBAG), as per a regulatory filing dated April 3, 2025.
The investment aims to facilitate funding for KTM AG, a subsidiary of PMAG, which is partially owned by PBAG. KTM AG is a well-known European motorcycle brand, producing popular models under the KTM, GASGAS, and Husqvarna brands. The proceeds from the bond issuance will be used for the phased resumption of KTM’s motorcycle production and operating expenses.
Key highlights of the transaction:
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Issuer: Pierer Bajaj AG (PBAG), Austria
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Subscriber: BAIH BV, Netherlands (100% subsidiary of Bajaj Auto)
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Size: €50 million, equivalent to ₹468.7 crore
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Structure: 500 bonds of €100,000 each
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Nature: Convertible Bonds, unsubordinated and unsecured
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Conversion Window: June 1, 2025 to February 29, 2028
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Maturity: March 31, 2028 (if not converted/redeemed earlier)
BAIH BV currently owns 49.9% in PBAG, which in turn holds 74.94% in Pierer Mobility AG (PMAG)—the parent firm of KTM AG.
The transaction, categorized as a related party transaction, was executed on an arm’s length basis and received approval from Bajaj Auto’s Audit Committee. It does not involve any new share issuance by Bajaj Auto directly.
This strategic investment underscores Bajaj Auto’s deepening global partnership in the premium motorcycle segment through KTM and its European network.
