Bajaj Auto Ltd has announced an additional capital infusion of up to ₹1,500 crore into its wholly-owned subsidiary, Bajaj Auto Credit Ltd (BACL). The investment will be made during the financial year 2025-26 in multiple phases through equity capital, preference capital, or subordinated debt.
BACL operates as a non-banking financial company (NBFC), providing financing for vehicles manufactured and sold by Bajaj Auto and its subsidiaries. The fund infusion is aimed at maintaining capital adequacy and supporting the company’s expansion as it scales its operations.
BACL was incorporated on December 6, 2021, and started its operations on January 1, 2024. It has expanded nationally in a phased manner throughout FY24-25. The company’s assets under management (AUM) stood at ₹7,048 crore as of December 2024, with a turnover of ₹16.65 crore in FY24.
The additional funds are to help meet regulatory requirements and sustain growth.
The board of Bajaj Auto has also approved the reappointment of Rajivnayan Rahulkumar Bajaj as Managing Director and CEO for another five-year term, starting April 1, 2025. His current term ends on March 31, 2025. Additionally, Abhinav Bindra has been reappointed as a non-executive independent director for another five-year term, effective May 20, 2025.
Both reappointments are subject to shareholder approval.
Following the announcement, shares of Bajaj Auto were trading at ₹7,755.75 as of 12:54 PM on March 19, showing a gain of 1.87% (+₹142.35) for the day. Over the past 6 months, the stock has declined by 34.65%, while it has dropped 10.24% over the past year. The company’s market capitalisation currently stands at ₹2,12,401.94 crore.
With the financing sector under increasing regulatory scrutiny, the additional capital will help BACL maintain compliance while supporting its loan portfolio. The company’s expansion aligns with its strategy to increase lending capacity in the vehicle financing segment.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 19, 2025, 2:39 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates