Bajaj Auto reappoints Rajiv Bajaj as MD and CEO for 5 years; ₹1,500-crore infusion approved in Bajaj Auto Credit

Bajaj Auto on Tuesday, March 18, reappointed Rajiv Bajaj (Rajivnayan Rahulkumar Bajaj) as the Pune-based auto major's mamaging director (MD) and chief excetive officer (CEO) for another five years, starting from April 1, 2025. The two and three-wheeler major's board also approved the reappointment of Abhinav Bindra as the non-executive independent director for a second term of five consecutive years with effect from May 20, 2025.

"….We wish to inform you that the Board of Directors of the Company, based on the recommendations of the Nomination and Remuneration Committee, at its meeting held on March 18, 2025 have approved the following re-appointment of the Directors, subject to approval of the Shareholders:

1.Rajivnayan Rahulkumar Bajaj as the Managing Director & Chief Executive Officer of the Company for another term of five consecutive years with effect from 1 April 2025.

2. Abhinav Bindra as a Non-executive Independent Director of the Company for a second term of five consecutive years with effect from May 20, 2025," said Bajaj Auto in a regulatory filing to the stock exchanges on Tuesday.

Also Read: Bajaj Auto sees two-wheeler growth at 5% for FY25, trimming earlier expectations

Bajaj Auto reappoints Rajiv Bajaj, Abhinav Bindra

The auto major said in its exchange filing that Rajiv Bajaj's current five-year term as MD and CEO is expiring on March 31, 2025. Based upon the board member's recommendations, Bajaj has been reappointed as the chief, subject to approval of the company's shareholders. Similarly, Bindra's current five-year term is expiring on May 19, 2025. Based upon the board member's recommendations, Bindra has been reappinted as the non-exec director.

Rajiv Bajaj graduated with distinction, in Mechanical Engineering from the College of Engineering Pune in 1988, and completed his Masters in Manufacturing Systems Engineering, with distinction, from the University of Warwick in 1991.

He joined Bajaj Auto Ltd in1990 and has since then worked in the areas of Manufacturing & Supply Chain (1990 - 1995), R&D and Engineering (1995 - 2000) and Marketing & Sales (2000 - 2005) and has been its MD since April 2005.

Abhinav Bindra is the first Indian to win an individual Olympic Gold and the first Indian to win a World Championship Gold in Air Rifle Shooting. Recipient of the Arjuna Award, the youngest recipient of the Rajiv Gandhi Khel Ratna Award, Bindra was conferred with India’s third highest civilian award, the Padma Bhushan. For his outstanding achievements in world sport, he was awarded with the Olympic Order, the highest recognition of the Olympic Movement by the International Olympic Committee in 2024.

Also Read: At record highs! Why HSBC prefers Bajaj Auto over TVS Motor Company?

Bajaj Auto invests ₹1,500 crore in subsidiary

Bajaj Auto's board of directors has approved an additional fund infusion of up to ₹1,500 crore into its wholly-owned subsidiary, Bajaj Auto Credit Ltd (BACL). The investment will be made in the form of equity capital, preference capital, or subordinated debt, in one or more tranches, during financial year 2025-26.

"We inform that the Board of Directors at its meeting held on March 18, have approved the additional fund infusion up to ₹1,500 crore in Bajaj Auto Credit, a wholly owned subsidiary of the company, either in the form of equity capital /preference capital /subordinated debt, as may be determined in the due course, in one or more tranches,” said the auto major in its exchange filing.

The capital infusion will be made through cash consideration and is aimed at supporting BACL’s growth and capital adequacy requirements. The additional investment up to ₹1,500 crore in BACL will be either in the form of equity capital / preference capital / or subordinated debt.

BACL, incorporated on December 6, 2021, and having commenced business on January 1, 2024, is a 100 per cent captive finance subsidiary of Bajaj Auto. It operates as a non-banking financial company (NBFC), providing financing for vehicles manufactured and marketed by Bajaj Auto and its subsidiaries.

Also Read: Bajaj Auto Q3 Results: Net profit rises 3% to ₹2,108 crore, revenue up 6% YoY on robust exports

"BACL is expected to grow Assets Under Management (AUM) significantly in FY2025-26, having completed its national expansion that was done in a phased manner over FY25. In compliance with the regulatory requirement and BACL’s policy on maintaining capital adequacy, additional capital infusion in the form of Tier-1 and Tier-2 Capital is required to support AUM growth."

As of December 2024, BACL has a total AUM of ₹7048 crore and a turnover of ₹16.65 crore in FY24. “The additional fund infusion will be made during the financial year 2025-26 in a phased manner,” said Bajaj Auto in its filing.

On Tuesday, shares of Bajaj Auto settled 1.62 per cent higher at ₹7,605.95 apiece on the BSE. The auto major commands a market cap of ₹2,12,401.94 crore. The auto stock is down 13 per cent year-to-date (YTD).

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.