Bajaj Finance’s board on Oct 1 cleared a ₹117 billion QIP and a ₹58 billion warrant issue to Bajaj Finserv, amassing a total of ₹175 billion in fresh capital.
Under the QIP, the company will issue 1‑rupee face‑value equity shares to qualified institutional buyers, while the warrant allotment is a preferential issue convertible into an equivalent number of shares at a later price. Bajaj Finserv will be the sole investor in the warrants.
At least 25% of the warrant consideration will be paid on allotment, with the remaining 75% due upon exercise, in line with SEBI ICDR regulations. Each warrant converts into shares that rank pari‑passu with fully paid‑up equity.
Shareholder approval will be sought through an extraordinary general meeting; the company has yet to set a date for the vote. The filing will be forwarded to BSE and NSE and SEBI for compliance.
Analysts suggest the capital raise could provide a cushion against future regulatory capital hikes and finance expansion plans, though the immediate effect on the share price is uncertain.
Bajaj Finance is expected to file the proposal with the exchanges and SEBI shortly; investors will monitor the EG meeting for the final green light.