- 19 Mar 2025
- ICICIdirect Research
BAJAJ AUTO LIMITED HAS ANNOUNCED AN ADDITIONAL FUND INFUSION OF UP TO ₹1,500 CRORE INTO ITS WHOLLY OWNED SUBSIDIARY
BAJAJ-AUTO - 7801 Change: 78.90 (1.02 %)News: In a press release, Bajaj auto Limited has announced an additional fund infusion of up to ₹1,500 crore into its wholly owned subsidiary, Bajaj Auto Credit Limited (BACL), to be executed in one or more tranches as equity capital, preference capital, or subordinated debt during FY2025-26. This investment aims to support BACL's significant growth in Assets Under Management (AUM), which is projected to increase following its national expansion completed in FY2024-25. As of December 31, 2024, BACL reported an AUM of ₹7,048 crore and a turnover of ₹16.65 crore as of March 31, 2024.
View: BACL is a 100% captive finance subsidiary of Bajaj Auto Limited established for the purpose of running it as an NBFC to finance vehicles manufactured and/or marketed by the Company and its subsidiaries/associates. During the 9M FY25, Bajaj Auto had already invested ₹1,600 crores in BACL to support its nationwide expansion and it achieved a key milestone by posting profit of ₹52 crore in Q3FY25. Bajaj Auto views BACL as a growth enabler for itself in the domestic markets. This investment in not accounted for as of now and we shall be building the same in our estimates going forward.
Impact: Neutral