India's No. 2 motorcycle maker, Bajaj Auto plans to increase its stake from 25% to 30% in KTM Power Sports, Europe`s second-largest sports bike manufacturer.

During a press conference, Rajiv Bajaj, Managing director of Bajaj Auto, disclosed that the company is tightening its grip on KTM Power Sports and the stake hike would be concluded in six to eight weeks.

Apart from latest development, Bajaj Auto, along with the KTM promoters plan to put in fresh capital into Austria-based KTM, which is also grappling with a difficult market.
 
After the preferential allotment of new shares, the KTM promoters will remain the largest shareholder with around 46% in the European company, followed by Bajaj Auto which will infuse Rs 100 core for the additional 5 percent stake.

According to reports it has learnt that Bajaj Auto currently owns 25 percent of KTM, for which company invested around Rs 800 crore.
 
In a separate release, Bajaj Auto, India's second-largest motorcycle maker said that four of its promoters have pledged pledged 3.7 million shares, representing 2.57% of its total equity capital.

The promoters held 50.28% in the company as on December 2008.