Bajaj Auto - Switches Stake In KTM With Its Parent Pierer Mobility: ICICI Direct
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Bajaj Auto Ltd. has switched its 48% stake in KTM AG with ~36.7% effective stake in its parent company i.e. Pierer Mobility AG; (listed entity with ~€1.9 billion market capitalisation) while retaining 1.5% residual stake in KTM AG.
In terms of capabilities; Bajaj Auto now has access to PMAG’s E-bikes segment as well as design and concept development abilities.
In the electric two-wheeler space, both companies are engaged in joint product development in this space and is outside the purview of the said transaction.
The company will now accrue the portioned market capitalisation of PMAG in its sum of the parts valuation versus our methodology of valuing its investment in KTM AG.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.