Bajaj Finance board okays proposals of up to Rs 10,000 cr QIP, preferential allotment

“The company will be seeking approval of the shareholders for the proposed QIP and PI by convening an extra ordinary general Meeting subject to applicable provisions/circulars issued by Ministry of Corporate Affairs from time to time,” Bajaj Finance said in a BSE filing.

Bajaj Finance Ltd on Thursday said its board has approved raising of up to Rs 8,800 crore capital through a qualified institutions placement by the issue of shares of face value of Rs 2 each. Besides, the Bajaj Finance board okayed preferential issue of up to 15,50,000 warrants convertible into equivalent number of equity shares to Bajaj Finserv Limited, the promoter, for an aggregate amount not exceeding Rs 1,200 crore.

“The company will be seeking approval of the shareholders for the proposed QIP and PI by convening an extra ordinary general Meeting subject to applicable provisions/circulars issued by Ministry of Corporate Affairs from time to time,” Bajaj Finance said in a BSE filing.

Bajaj Finance recently clocked 33 per cent YoY jump in asset under management, which foreign brokerage CLSA said made the September quarter one of the strongest Q2 since Covid. This is spite of negative drag from ‘Adhik Maas’.

Analysts said a strong loan growth has been one of the main reasons for Bajaj Finance’s decision to raise capital raise. The fund raise, despite the NBFC having a strong tier I capital of 23 per cent suggests that the company is gearing up to achieve long-term growth ambitions.

In the September quarter, Bajaj Finance’s loans disbursed grew at 25 per cent YoY and the customer acquisition was strong at 36 lakh. “It’s interesting to note that since 3Q23 company has been adding 30 lakh-plus customers per quarter. We watch out for trend in spreads and key drivers of AUM growth in the results. With recent capital raise we had increased our loan growth estimates, and maintain Bajaj Finance as one of our top three picks,” CLSA said today.