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Company Update: Bajaj Auto

Company Update: Bajaj Auto
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First Published: Tue, Feb 10 2009. 09 44 AM IST
Updated: Tue, Feb 10 2009. 09 44 AM IST
Bajaj Auto has reported to hike its stake in KTM Sports from 25% to 30%. The hike will be through preferential allotment of shares by KTM.
The KTM promoters will remain the largest shareholder with around 46% in the European company, followed by Bajaj Auto. The company is believed to invest close to Rs100cr for the latest round of stake hike.
The acquisition is to be completed in 6-8 weeks. Till date, Bajaj has invested close to Rs800 crore for its shareholding in KTM.
Main purpose of this acquisition is to roll out the high-powered KTM bikes in India. The KTM bikes, Duke and RR, based on the two platforms of 125cc-180cc and 250cc-400cc will be assembled at Bajaj Auto’s Chakan facility.
We maintain a BUY on the stock, with a target price of Rs567.
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First Published: Tue, Feb 10 2009. 09 44 AM IST
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