Bajaj Finance, on October 5, announced that it is raising Rs 10,000 crore through a combination of qualified institutions placement (QIP) and the preferential issuance of shares. The plan involves raising up to Rs 8,800 crore through QIP and an additional Rs 1,200 crore through preferential allotment to promoter Bajaj Finserv.
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"The company will be seeking approval of the shareholders for the proposed QIP and PI by convening an Extraordinary General Meeting subject to applicable provisions/circulars issued by the Ministry of Corporate Affairs from time to time," it said in an exchange filing.
The company announced its intention to generate Rs 1,200 crore through a preferential issue of a maximum of 15.5 lakh warrants, which can be converted into an equivalent quantity of equity shares, to its parent company, Bajaj Finserv.
Upon the completion of the conversion process for these preferential warrants into equity, Bajaj Finserv's ownership stake in Bajaj Finance will increase from its previous 52.45% to 52.57%. The specific issue price, however, will be determined at a later stage.
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Each warrant can be converted into an equivalent number of equity shares within 18 months from the date of allotment. If the option to convert the warrants into equity shares is not exercised, the warrants will expire.
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Earlier this week, the company released significant consolidated business metrics for the quarter ending September 30th. Bajaj Finance reported a 26% increase in new loans booked during the July to September quarter, with 85.3 lakh loans compared to 67.6 lakh in the same period the previous year.
Furthermore, the company's deposits totaled approximately Rs 54,800 crore as of September 30, 2023, a substantial increase of 39% year-on-year compared to Rs 39,422 crore in the corresponding month last year.