KTM has been amidst crisis and after a court hearing that helped KTM write off most of its debts, the Austrian company still faced a challenge to settle dues to its creditors. Bajaj came to the rescue a few weeks ago and now, the Pune-based company has raised a massive Rs 5,431 crore loan to rescue the Austrian manufacturer.
Bajaj raises Rs 5,431 crore loan for KTM
Bajaj raised Rs 5,431 crore loan ($632 million) just one day before KTM’s deadline, to rescue the company. KTM had filed for insolvency last year amidst struggling sales and build-up of debt. However, a few weeks ago, most of KTM’s debt was written off, but the company still had to secure €544 million before 23 May.
Bajaj, with its international arm and with the help of JP Morgan Chase, DBS Bank and Citigroup, raised an unsecured loan, according to a BSE filing. The funds are to be used for Bajaj’s investments, according to the filing.
KTM files for insolvency — What really happened?
In November 2024, KTM filed for bankruptcy, after the acquisition of MV Agusta and investing a substantial amount into MotoGP. The decline in two-wheeler sales in Europe added to KTM’s financial problems. KTM even had to cut costs on some of its motorsport arms, including the Dakar Rally, racing with the KTM brand alone, leaving Husqvarna and Gas Gas out of this year’s competition.
Following the loan, Bajaj’s shares experienced a 1.91 percent increase, trading at Rs 8,487.15 on the BSE. Bajaj is yet to give an official announcement and so is KTM.
