India’s second largest two wheeler manufacture Bajaj Auto raised its stake to 38.09% in Austria’s KTM Power Sports AG. KTM which is known for its off road motorcycles like Duke in European Market.
Bajaj Auto International Holdings BV Netherlands (BAIHBV), a 100 per cent subsidiary of Bajaj Auto Ltd, purchased further 2,44,600 shares in KTM Power Sports AG (KTMPS) on November 3, 2010,” the company said in statement.
Before this stake hike the company had a 35.67% stake in KTM. Bajaj Auto had purchased 14.9% stake in 2007. After a year it increased the stake to 25% which was further increased to 31.92% by open market operation. In the month of April this year it had further hiked its stake to 35.67% by participating in a 42.9 million Euro equity issue by the KTM Power Sports AG.
Bajaj Auto and KTM are jointly developing a 125cc and 250cc motorcycle. The first co-developed product KTM Duke 125 was shown in INTERMOT Show at Cologne Germany in October 2010 and will also be on display in the Milan show.
About the launch of the KTM Duke 125 Bajaj Auto said “The first of the co-developed products, KTM Duke 125, will hit European markets in 2011.”
Bajaj Auto is planning to launch KTM Duke in second half of this financial year 2011-12 which is November 2011 to April 2012.
– Mahavir Kothari