Bajaj Finance Launches QIP Issue To Raise Up To Rs 8,800 Crore
The fundraising announcement comes after it had approved the allotment of 15.5 lakh warrants to Bajaj Finserv.
The board of Bajaj Finance Ltd. has approved raising of up to Rs 8,800 crore through qualified institutional placement of shares at the face value of Rs 2 apiece.
The QIP opened on Monday, and the floor price is set at Rs 7,533.81 per equity share. The non-banking financial company may offer a discount of "not more than 5%" on the floor price, according to an exchange filing.
The book running lead managers to the QIP issue are Bank of America Securities India, Morgan Stanley India, JM Financial and Citigroup Global Markets India.
The fundraising announcement through the QIP comes after Bajaj Finance approved the allotment of 15.5 lakh warrants to Bajaj Finserv last week to raise Rs 1,189 crore at the issue price of Rs 7,670 per warrant.
Bajaj Finance intends to use the proceeds of the QIP issue up to Rs 7,040 crore for repayment of loans, commercial papers, non-convertible debentures, and interest payments by Sept. 30, 2024. The remaining amount of net proceeds will be used for general corporate purposes.
The latest quarterly results showed that the company remains well-capitalised, with a capital adequacy ratio of 21.88% as of Sept. 30. The planned capital raise is primarily expected to be for "upfronting of capital to support strong AUM growth" of 32% in the first quarter, according to Jefferies Financial Group Inc.
Shares of Bajaj Finance closed 1.88% higher at Rs 7,560.05 apiece on the BSE as compared with a 0.92% advance in the benchmark Sensex.