Bajaj Auto, a leading Indian two-wheeler manufacturer, announced a significant move on April 18, 2024, that promises to accelerate their growth trajectory. The company’s board of directors approved an additional fund infusion of ₹2,250 crore (approximately USD 2.6 billion) into its wholly-owned subsidiary, Bajaj Auto Credit Limited (BACL). This strategic investment signifies Bajaj Auto’s commitment to strengthening its financial services arm and empowering its customer base.
Additional investment in the equity share capital of BACL of ₹2,250 crore in a phased
manner, in addition to the existing ₹600 crore approved earlier.
The board has approved the grant of a Revolving Line of Credit to BACL up to an amount of ₹2,250 crores as standby liquidity support. The interest rate will be at an arm’s length basis prevailing at the time of any drawdown.
Bajaj Auto has traditionally dominated the Indian two-wheeler market through its innovative and fuel-efficient motorcycles and scooters. However, this latest move signals its intent to expand its offerings beyond vehicle manufacturing. The additional capital will allow BACL to enhance its financial services portfolio, catering to a wider range of customer needs.
Bajaj Auto’s strategic investment in BACL signifies its commitment to innovation and long-term growth. This move not only strengthens their financial services arm but also creates a customer-centric ecosystem that caters to every aspect of the two-wheeler buying experience.
Bajaj Auto Credit Limited is a 100% captive finance subsidiary of Bajaj Auto established to operate as an NBFC to finance vehicles manufactured and/or marketed by the Company and its subsidiaries/associates.
Bajaj Auto Limited is the flagship company of Bajaj Group. It manufactures two-wheelers and three-wheelers and exports to 79 countries in Latin America, Southeast Asia, and many more. On April 19, 2024, the shares of the company opened at ₹9,094.50 and touched the day high of ₹9,094.50 at 12:02 PM.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Apr 19, 2024, 2:50 PM IST
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