The proposed qualified institutional placement follows investor roadshows and forms part of a broader ₹17,500 crore capital-raising plan.
Highlights
- Bajaj Finance reportedly preparing a ₹11,700 crore institutional share sale.
- Offering could launch as soon as this week.
- Investor roadshows have been completed, Bloomberg reported.
- Fundraising planned through a qualified institutional placement.
- Broader capital plan includes ₹5,800 crore in promoter warrants.
- Final pricing and allotment details remain awaited.
Mumbai, November 11: Bajaj Finance is preparing to launch a share sale to institutional investors that could raise up to ₹11,700 crore, or ₹117 billion, as soon as this week, Bloomberg reported, citing people familiar with the matter.
The Bajaj Group lender has completed investor roadshows and could open the qualified institutional placement, or QIP, within the next day or two, according to the report. The people sought anonymity because the discussions are private. The reported timeline relates to a planned offering; it does not indicate that the fundraising has been completed.
The proposed institutional placement forms part of a broader capital-raising programme of up to ₹17,500 crore. Alongside the ₹11,700 crore QIP, the plan includes a preferential issue of warrants convertible into equity shares worth up to ₹5,800 crore to promoter and holding company Bajaj Finserv. Company disclosures record the board’s approval of these proposals on October 1, subject to applicable approvals.
A QIP allows a listed company to raise capital by issuing securities to eligible institutional investors. Unlike a public offering open to retail applicants, participation is limited to qualified institutional buyers. The final issue price and number of shares allotted determine how much capital is raised and the resulting dilution for existing shareholders.
Moneycontrol had reported in October that Bajaj Finance had appointed Kotak Mahindra Capital, JPMorgan and Morgan Stanley to work on the fundraising. That report said the proceeds were intended to support future growth and that the launch would depend on market conditions.
Fresh equity could give the lender additional capacity to support expansion while strengthening its capital base. For existing shareholders, the key details will be the placement price, the size of the final issue and how effectively the company deploys the money.
Bajaj Finance last raised equity capital in 2023, when it secured ₹10,000 crore through a combination of a QIP and warrants. It had previously raised ₹8,500 crore through a QIP in 2019, according to Moneycontrol.
The latest report suggests preparations for the institutional portion are nearing launch. However, the timing remains a reported expectation. The definitive terms, including the opening date, issue price and allocation, will become clear through the company’s formal disclosures.
