Bajaj Finance set to mop up Rs 17,500 crore via QIP, warrants
Bajaj Finance intends to raise ₹17,500 crore through share sales and warrants to fuel its growth. The company's board approved plans for ₹11,700 crore via a qualified institutional placement and ₹5,800 crore through warrants for its promoter. A shareholder meeting will be convened to approve the proposed QIP. This marks the first major fundraising effort since the previous capital raise in…
Mumbai: Bajaj Finance plans to raise ₹17,500 crore through a combination of share sales to institutional investors and warrants issued to promoters, as it prepares for the next stage of growth. This marks the first equity fundraising for the country's largest non-banking financial company (NBFC) since its ₹10,000 crore capital raise in November 2023.
The board of directors approved the QIP and warrant issuance on Thursday, with Bajaj Finserv, the promoter, acquiring a 51.30% stake in the NBFC. The company will seek shareholder approval via an extraordinary general meeting. Issuing warrants to Bajaj Finserv is intended to maintain market sentiment and encourage institutional investors to increase their stakes in the company.
While this capital raise is substantial, it remains a fraction of Bajaj Finance's loan book, which surpasses ₹5 lakh crore.
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