Archive · 3 Oct 2026
Bajaj Finance Approves ₹17,500 Crore Raise as Jefferies Sees Upside
Bajaj Finance plans to raise as much as ₹17,500 crore.
It wants to raise ₹11,700 crore by selling shares to large investors.
It also plans to give warrants worth up to ₹5,800 crore to Bajaj Finserv, its parent company.
Warrants can later be exchanged for shares.
Shareholders still need to approve both plans.
Jefferies thinks the shares could rise and gave them a target price of ₹1,280.
It said the fundraising could help the company, while also noting that its outlook depends on factors such as growth and loan quality.
Selling new shares can reduce existing shareholders’ percentage ownership, and the effect on value depends partly on how the money is used.
Bajaj Finance approved a QIP of up to ₹11,700 crore and warrants worth up to ₹5,800 crore for Bajaj Finserv.
The boards approved the proposals on October 1; both transactions require shareholder approval and other applicable approvals.
At least 25% of the warrant consideration is due at allotment, with the balance payable upon exercise; the warrants may be exercised within 18 months.
Jefferies named Bajaj Finance a top pick and set a ₹1,280 price target, about 35% above the ₹947.50 price cited in its report.
The shares were reported down 10% in a month; analysts and coverage also cited dilution, execution, growth, margin and asset-quality risks.
- Who
- Bajaj Finance and its parent and promoter, Bajaj Finserv; Jefferies provided an investment assessment.
- What
- Bajaj Finance plans a QIP of up to ₹11,700 crore and a preferential issue of up to ₹5,800 crore in warrants to Bajaj Finserv.
- When
- The boards approved the proposals on October 1; a Jefferies report dated October 2, 2026, discussed the raise.
- Where
- The proposals concern Bajaj Finance, an Indian company.
- Why
- Bajaj Finance said the raise would strengthen its capital base; Bajaj Finserv said its participation would demonstrate support and give prospective investors confidence.
Potential benefits
Risks and uncertainties
Capital raise and future value
Potential benefits
Bajaj Finance said the raise is intended to strengthen its capital base. Jefferies said it could lift FY28 estimated book value per share by 8%, while naming the company among its top picks.
Risks and uncertainties
Issuing new shares can dilute existing shareholders’ percentage ownership. The coverage notes that the effect on value depends on the issue price and how effectively the funds are used.
Jefferies outlook
Potential benefits
Jefferies set a ₹1,280 price target, about 35% above the ₹947.50 share price cited in its report, and pointed to growth and operating-efficiency opportunities.
Risks and uncertainties
Jefferies identified slower growth, greater-than-expected net interest margin compression and worsening asset quality as risks to its valuation.
Bajaj Finserv’s participation
Potential benefits
Bajaj Finserv said its investment would demonstrate support and commitment and could build confidence among prospective investors.
Risks and uncertainties
Bajaj Finserv said the investment was not driven by Bajaj Finance’s immediate capital requirements.
- Maximum proposed raise
- ₹17,500 crore combined
- QIP
- Up to ₹11,700 crore through equity shares offered to qualified institutional buyers
- Warrants
- Up to ₹5,800 crore to be subscribed to by Bajaj Finserv
- Bajaj Finserv ownership
- 51.30% of Bajaj Finance’s issued and paid-up equity share capital
- Warrant payment
- At least 25% at allotment and the remaining 75% upon exercise and share allotment
- Warrant exercise period
- Within 18 months of allotment, or another period permitted under applicable regulations
- Shareholder approval
- An Extra Ordinary General Meeting is to be convened to seek approval for both proposals
- Jefferies assessment
- ₹1,280 price target; the report cited a current share price of ₹947.50
