1 hr ago
Bajaj Finance Plans Rs 11,700 Crore QIP, Bajaj Finserv Invests
Bajaj Finance wants to raise money by selling shares to large institutional investors.
The planned fundraising could be worth up to Rs 11,700 crore.
Its parent company, Bajaj Finserv, plans to invest up to Rs 5,800 crore.
It would do this by buying warrants that can later become Bajaj Finance shares.
Bajaj Finserv says the investment shows support for its subsidiary.
It also says the decision is not because Bajaj Finance immediately needs the money.
Shareholders must approve both transactions at a special meeting.
Bajaj Finserv currently owns 51.30% of Bajaj Finance.
The company says it will continue controlling Bajaj Finance after the investment.
Bajaj Finance plans to raise up to Rs 11,700 crore through a Qualified Institutions Placement.
Bajaj Finserv’s board approved investing up to Rs 5,800 crore in convertible warrants of Bajaj Finance.
The investment will be made through a preferential allotment on a private placement basis and entirely in cash.
Shareholders must approve both the QIP and preferential issue at an Extra Ordinary General Meeting.
Bajaj Finserv holds 51.30% of Bajaj Finance and said it will retain control after the proposed investment.
- Who
- Bajaj Finance and its parent company, Bajaj Finserv.
- What
- Bajaj Finance plans an up-to-Rs 11,700 crore QIP, while Bajaj Finserv plans to invest up to Rs 5,800 crore through convertible warrants.
- Where
- The proposed transactions concern Bajaj Finance, a company with a presence across India.
- When
- The warrant allotment is expected within 15 days of Bajaj Finance shareholders passing the special resolution; the article does not specify the meeting date.
- Why
- Bajaj Finserv says its participation will demonstrate support, reinforce its commitment, and provide confidence to prospective investors.
Key facts
- Planned QIP size
- Up to Rs 11,700 crore
- Bajaj Finserv investment
- Up to Rs 5,800 crore in convertible warrants
- Current ownership
- Bajaj Finserv holds 51.30% of Bajaj Finance
- Transaction structure
- Preferential allotment on a private placement basis
- Funding method
- The proposed warrant investment will be made entirely in cash
- Required approval
- Bajaj Finance shareholders must approve the QIP and preferential issue at an Extra Ordinary General Meeting
- Expected allotment timeline
- Within 15 days of the special resolution, according to Bajaj Finserv
Sources
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