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India’s largest non-bank lender has given the green light for a fundraise, with plans to raise up to Rs 8,800 crore through a Qualified Institutional Placement (QIP). Additionally, the company has approved a sum of up to Rs 1,200 crore through a preferential issue, involving the conversion of up to 15.5 lakh warrants into an equivalent number of equity shares for its promoter company, Bajaj Finserv. To proceed with these financial moves, Bajaj Finance will seek shareholder approval by convening an Extraordinary General Meeting, although no specific timeline for the meeting has been provided.
Upon conversion of these preferential warrants into equity shares, Bajaj Finserv’s ownership stake in Bajaj Finance will increase marginally from 52.45 percent to 52.57 percent. The issue price for the warrants will be determined at a later stage, and each warrant can be converted into equity shares within 18 months from the date of allotment. If not converted within this timeframe, the warrants will expire.
In the September quarter, Bajaj Finance reported a robust 26 percent growth in new loans booked, reaching 85.3 lakh compared to 67.6 lakh in the same period the previous year. Furthermore, the company’s Assets Under Management (AUM) experienced impressive growth, surging by 33 percent to nearly Rs 2.9 lakh crore, marking its strongest AUM growth in four years.
Earlier in September, the company successfully raised Rs 1,195 crore by issuing secured redeemable Non-Convertible Debentures (NCDs) with an annual interest rate of 7.85 percent. Additionally, it had raised approximately Rs 1,700 crore through NCDs in May.
As of Friday, October 6, shares of Bajaj Finance were trading at nearly 1.5 percent higher at Rs 7,967.50 apiece around 12.15pm.
