Bajaj Auto increased stake in KTM

KTM Power Sports AG, Europe's second largest motorcycle manufacturer and World's No I Off-Road Bike maker, closed a 42.99 Million Euro Capital increase on 16 th April 20lO. The Capital increase comprised of 13 .24 Million Euros by way of conversion of loans and 29.75 Million Euros Cash rights issue. Bajaj Auto Ltd, has invested Euro 20 Million in this capital increase and consequently has increased its share-holding in KTM from 31.92% to 35.67%. Cross Industries (controlled by Messrs Stefan Pierer and Rudy Knunz) retained its shareholding at over 50%, by a combination of cash subscription and loan conversion. The investment by Bajaj reinforces its commitment to KTM and highlights the significance of"Ready to Race" KTM Brand in its "Global Strategy". The joint development projects are proceeding well and the first products will the markets end of this year in Europe and by middle of 2011 in India. Bajaj will distribute KTM products in India and in markets like Srilanka, Bangladesh, Indonesia, Africa and such Bajaj lead markets. Apart from it, TVS Motor has commercial launched its TVS Wego in Pune recently. Meanwhile, Yamaha is also planning to introduce its two new models such as Yamaha SZ and Yamaha YZF R125.