As it was expected for the past couple of months, Bajaj Auto, India's second largest two-wheeler maker has decided to up its stake in the Austrian bike maker KTM. The company has recently announced that it has invested a sum of 20 million euros to raise its shareholding in KTM to the 35.7 per cent level from its earlier 31.9 per cent level.

The company said in a statement that the stake rise was a part of a loan conversion and rights issue programme.

Notably, the market was earlier flooded with the news of Bajaj raising its stake in KTM. However, the company didn't confirm the rumours but this deal clearly marks the start of a new journey for Bajaj Auto.

Clearly, the company has taken a new growth path for the Indian market and as well as the overseas market. If the experts are to be believed then the joint development projects among the duo were proceeding well and it will be start launching the products in the European market by the year-end and by mid-2011 in India.