“Bajaj Finance Announces Rs 10,000 Crore Fundraise Through QIP and Preferential Issue”

Bajaj Finance, a prominent non-banking financial company (NBFC), has unveiled its intention to raise Rs 10,000 crore through a combination of qualified institutions placement (QIP) and a preferential issue of shares. This strategic move includes the mobilization of up to Rs 8,800 crore through QIP and Rs 1,200 crore through preferential allotment to its promoter entity, Bajaj Finserv. The company has indicated that the proposed QIP and preferential issue will be subject to approval by its shareholders, to be sought through an Extraordinary General Meeting, in accordance with relevant provisions and circulars issued by the Ministry of Corporate Affairs.

Moneycontrol previously reported on Bajaj Finance’s fundraising plans, which involve a combination of QIP and preferential issue routes. In specific terms, the company aims to raise Rs 1,200 crore through a preferential issue involving up to 15.5 lakh warrants, which are convertible into an equivalent number of equity shares, with Bajaj Finserv being the recipient of these warrants.

Upon the conversion of the preferential warrants into equity shares, Bajaj Finserv’s ownership stake in Bajaj Finance will increase from 52.45 percent to 52.57 percent. The actual issue price for these warrants will be determined at a later stage. Each warrant carries the provision of conversion into equity shares within an 18-month period from the date of allotment, and should this option not be exercised, the warrants will expire.

Bajaj Finance’s shares saw a marginal decline, closing at Rs 7,849.25 on the day leading up to the fundraising announcement.

Earlier in the week, the company disclosed key business metrics for the quarter ended September 30, reporting a robust 26 percent growth in new loans booked during the period, totaling 85.3 lakh compared to 67.6 lakh in the same quarter last year. The deposits book also showed significant expansion, reaching approximately Rs 54,800 crore by September 30, 2023, compared to Rs 39,422 crore in the corresponding month of the previous year, representing a year-on-year growth of 39 percent. Additionally, Bajaj Finance’s assets under management (AUM) experienced a notable increase of 33 percent, reaching approximately Rs 290,200 crore by the end of September, compared to Rs 218,366 crore in the same period last year, with an AUM growth of approximately Rs 20,100 crore in Q2 FY24.

Sources By Agencies

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