Bajaj Auto to Infuse ₹1,500 Crore into Bajaj Auto Credit

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.

Objective of the Capital Infusion

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’s Financials

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.

Leadership Reappointments

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.

Market Performance

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. 

Conclusion

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.

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