Recently, the motorcycle manufacturer KTM declared the bankruptcy in the international bike market. Not only that, it was worrying for Indian customers. Because KTM has partnership with Bajaj Auto. On Friday, the Bajaj Auto said they would invest Tk 1.5 crore or 1 million euros in their Netherlands subsidiary.
That money can cost KTM to pick up from the edge of the shaft. According to the agency's regulatory filing, the investment will be equity capital, priority capital, loan – convertible form or otherwise. This decision may be determined at the right time. It has also been said that this investment will be made in one or more installments.
Austrian bike maker KTM has 5% shares of Bajaj Auto International Holdings. The rest of the shares are another Austrian bike maker Pierre Mobility Group. It is to be noted that after the news of the bankruptcy, KTM announced an emergency reconstruction on November 27, 2021.
Pierre Mobility Group said last November, “Due to excessive financing demand, the KTM AG restructuring system is in the process of implementing the reorganization system. According to the KTM AG management, it will not be possible to ensure the required interim financing on time. ” “In addition to ensuring liquidity, the Executive Board is trying to bring KTM AG back to a stable working and financial basis,” the company added.
Contextually, the Bajaj Auto and KTM partnership started from the 25th, when Bajaj Auto International Holdings (BAIHBV) decided to purchase a 5.5% share in KTM Power Sports Eg. Then this brand was introduced in India. BAIHBV gradually increases its shares by 5%. In 2021, BAIHBV swepted 1.5% shares in the PTW Holding Group (KTM Group's main company) by exchanging his 1.5% shares, which made the shareholding easier.
