Bajaj Finance Approves Rs 17,500 Cr Fundraising Through QIP, Warrants

Bajaj Finance has approved plans to raise up to Rs 17,500 crore through a combination of a qualified institutions placement (QIP) and a preferential issue of warrants to its promoter and holding company Bajaj Finserv.

The board approved the proposals at its meeting on 01 October, with the company set to seek shareholder approval for both fund-raising plans through an extraordinary general meeting (EGM).

Under the QIP, Bajaj Finance will issue equity shares with a face value of Rs 1 each to qualified institutional buyers. The company can raise up to Rs 11,700 crore through the issue.

The pricing and other terms of the QIP will be determined in accordance with applicable regulations.

Separately, the board approved a preferential issue of warrants worth up to Rs 5,800 crore to Bajaj Finserv, which will be the sole proposed allottee.

Each warrant will be convertible into an equivalent number of equity shares of Bajaj Finance. The issue price will be determined at a later stage in accordance with applicable laws and regulations.

At least 25 per cent of the consideration will be payable at the time of allotment of the warrants, with the remaining 75 per cent payable when the warrants are exercised and the corresponding equity shares are allotted, in accordance with the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements (ICDR) Regulations.

The equity shares issued upon conversion will rank pari-passu with Bajaj Finance’s existing fully paid-up equity shares.

The proposed fund raising comes as Bajaj Finance seeks to strengthen its capital base, with the company pursuing both institutional equity funding and additional capital from its promoter.