Bajaj Finance Board Approves ₹17,500 Crore Fundraise Through QIP, Warrants
· Free Press Journal
Bajaj Finance’s board has approved a proposal to raise up to ₹17,500 crore through two separate capital-raising routes, comprising a Qualified Institutional Placement and a preferential issue of warrants.
The decision was taken at the company’s board meeting on Thursday and remains subject to the required statutory and regulatory clearances, including approval from shareholders.
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QIP to raise up to ₹11,700 crore
Under the proposed fundraising plan, Bajaj Finance will seek to raise as much as ₹11,700 crore through a Qualified Institutional Placement.
The route enables listed companies to issue equity shares to qualified institutional buyers in accordance with applicable regulations.
Bajaj Finserv To invest Up To ₹5,800 Crore In Subsidiary Bajaj FinanceThe QIP will involve equity shares with a face value of Re 1 each. According to the company’s exchange filing, the issue will comply with the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations, 2018, the Companies Act, 2013, and other applicable laws.
The board has also approved a preferential issue of warrants worth up to ₹5,800 crore. Warrants provide their holders with the right to convert them into an equivalent number of equity shares, subject to the terms of the issue and applicable regulations.
Shareholder nod required
Together, the QIP and warrant issue could provide Bajaj Finance with up to ₹17,500 crore in fresh capital.
The company will seek shareholder approval for both proposals by convening an Extra Ordinary General Meeting.
The process will be conducted in accordance with applicable provisions and circulars issued by the Ministry of Corporate Affairs and SEBI.
The proposed warrant issue will also be governed by the relevant SEBI regulations and other applicable laws.
Bajaj Finance said the fundraising plans are conditional on obtaining the necessary regulatory and statutory approvals. Shareholder consent will also be required before the proposed issues can proceed.
The board’s approval therefore marks the initial step in the proposed capital-raising exercise, with the final implementation dependent on the required approvals and completion of the prescribed processes.