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The board of Bajaj Auto approved an additional fund infusion of Rs 2,250 crore in its wholly owned subsidiary, Bajaj Auto Credit Ltd, and also decided to grant a revolving credit line of Rs 2,250 crore as standby liquidity support.
“The Board of Directors at its meeting held on April 18, 2024, have approved the additional fund infusion in BACL… Additional investment in the equity share capital of BACL of Rs 2,250 crore in a phased manner, in addition to the existing Rs 600 crore approved earlier,” Bajaj Auto said in a notification to exchanges.
“Grant of a Revolving Line of Credit to BACL up to an amount of Rs 2,250 crore as standby liquidity support. The interest rate will be at an arm’s length basis prevailing at the time of any drawdown,” the notification further added.
Last month, Bajaj Auto said it is ramping up its wholly owned captive finance subsidiary BACL and plans to invest more than Rs 3,000 crore over 2024-25 and 2025-26.
BACL commenced operations on January 1, 2024, after receiving its licence from the Reserve Bank of India in August last year. As of January 31, 2024, the company’s assets under management stood at Rs 103 crore corresponding to a net worth of Rs 78 crore, and debt of Rs 151 crore, rating agency Crisil noted.
