Bajaj to raise stake in KTM to 30 pct

India's No. 2 motorcycle maker, Bajaj Auto, is set to increase its stake in Austrian bike maker KTM to 30 percent, the Economic Times reported on Tuesday, citing the Indian firm's managing director.

Bajaj Auto currently owns 25 percent of KTM and Rajiv Bajaj told the newspaper that the stake increase would be completed in 6-8 weeks, declining to give a valuation.

"We have reached an agreement to increase stake in KTM. At this juncture, it won't be appropriate for me to talk about the valuations," Bajaj was quoted as saying.

But the paper said Bajaj Auto would infuse 1 billion rupees ($20.5 million) for the additional 5 percent stake, without saying how it got the information. It said Bajaj Auto had already invested about 8 billion rupees for its shareholding in KTM.

Source: Reuters & Economic Times