Bajaj Finance seeks up to ₹175 billion through QIP and promoter warrants
Bajaj Finance has approved a plan to raise as much as ₹175 billion, combining a qualified institutional placement of ₹117 billion with a preferential warrant issue of ₹58 billion to Bajaj Finserv.
Bajaj Finance's board has cleared a fundraising effort that could total ₹175 billion. The first component involves a qualified institutional placement, allowing the company to sell equity shares to institutional investors for up to ₹117 billion. The second component is a preferential issue of convertible warrants to its promoter and holding company, Bajaj Finserv, worth up to ₹58 billion.
Shareholder consent will be sought at an extraordinary general meeting, and all actions must comply with applicable regulations. The warrant issue will determine its price later, with a minimum of 25 % payable at allotment and the balance due when the warrants are exercised. If Bajaj Finserv does not convert the warrants within the stipulated period, the unpaid portion will be forfeited.
Why it matters
The fundraise could significantly boost Bajaj Finance's capital base, affecting its lending capacity and market position.
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