Bajaj Finance Ltd received its board's approval on 5 October to raise Rs 10,000 crore through qualified institution placement (QIP) and the preferential issue of shares. The non-banking financial company (NBFC) is looking to raise around Rs 8,800 crore through QIP and Rs 1,200 through preferential allotment to promoter entity Bajaj Finserv.
The preferential issue will involve the allotment of a maximum of 15.5 lakh warrants to promoter Bajaj Finserv, which can be converted to an equivalent number of equity shares within 18 months from the date of allotment.
"The company will be seeking approval of the shareholders for the proposed QIP and PI by convening an Extra Ordinary General Meeting subject to applicable provisions/circulars issued by the Ministry of Corporate Affairs from time to time," the company said in an exchange filing.
On Friday, Bajaj Finance shares jumped nearly 3 per cent to Rs 8,065 on the National Stock Exchange (NSE). Bajaj Finserv shares surged over 4 per cent to Rs 1,607.
Once the conversion of preferential warrants into equity is done, the promoter company's share in Bajaj Finance will increase to 52.57 per cent from 52.45 per cent. The issue price will be determined at a later stage. In case, the warrants are not converted into equity shares, the warrants will subsequently lapse.
In the September quarter, Bajaj Finance recorded a 26 per cent increase in new loans booked, rising from 67.6 lakh to 85.3 lakh compared to the same period last year. The company's assets under management (AUM) witnessed 33 percent growth to Rs 2.9 lakh crore, highest in the last four years.
In September, the Bajaj Group company successfully secured Rs 1,195 crore through the allotment of secured redeemable non-convertible Debentures (NCDs) with an annual interest rate of 7.85 per cent. The company had raised approximately Rs 1,700 crore through NCDs in May.