Bajaj Finance has officially launched a share sale to raise up to ₹117 billion, equivalent to approximately $1.25 billion, from institutional investors. According to terms observed in Mumbai, this move represents the first major equity offering in India since the significant $3.1 billion initial public offering by Jio Platforms last month.
The company has set an indicative price of ₹1,025 per share for this institutional placement. This figure reflects a 4.99% discount compared to the stock's closing price on Wednesday. The funds generated through this capital-raising exercise are earmarked for several financial obligations, including the repayment of loans, deposits, and commercial paper, as well as the settlement of non-convertible debentures and various interest payments.
To facilitate the transaction, Bajaj Finance has engaged a consortium of major financial institutions. The list of firms collaborating on the deal includes Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, IIFL Capital Services, Axis Capital, and JM Financial.
This initiative follows a board decision made on October 1, which approved plans to raise a total of ₹175 billion. This amount was structured to comprise a ₹117 billion qualified institutional placement alongside ₹58 billion generated from warrants. On November 10, the company successfully raised approximately ₹58 billion by allotting 57.43 million warrants to its promoter, Bajaj Finserv, at a price of ₹1,010 per warrant.
India’s equity market remains among the most active globally for fundraising this year. Companies in the country have collectively raised approximately $50.25 billion through equity offerings so far, compared to the $58.78 billion total recorded for the entirety of last year.
Key facts
- The share sale aims to raise ₹117 billion, or $1.25 billion, from institutional investors.
- The indicative price of ₹1,025 per share represents a 4.99% discount to Wednesday's closing price.
- Six financial firms, including Morgan Stanley and JP Morgan Chase, are managing the transaction.
- Proceeds will be used to repay commercial paper, deposits, loans, and non-convertible debentures.
- The firm previously raised ₹58 billion via warrants allotted to Bajaj Finserv on November 10.
Source: Economic Times
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