Bajaj Finance launches share sale to raise up to $1.25 billion
The non-bank lender is seeking funds from institutional investors through a qualified institutional placement and warrants.
Bajaj Finance launched a share sale in Mumbai on Wednesday to raise as much as ₹11,700 crore ($1.25 billion) from institutional investors, according to reports by The Economic Times and BusinessLine.
The company is seeking to raise funds through a qualified institutional placement (QIP) and the issuance of warrants. The board of the lender approved plans on October 1 to raise up to ₹11,700 crore via QIP and ₹5,800 crore through warrants.
According to terms seen by Bloomberg, the offering has an indicative price of ₹1,025 per share, representing a 4.99 per cent discount to Wednesday's closing price. BusinessLine reported a floor price of ₹992.25 per share.
The proceeds from the sale will be used for various purposes, including interest payments and the repayment of loans, deposits, commercial paper, and non-convertible debentures.
Bajaj Finance is working with Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, IIFL Capital Services, Axis Capital, and JM Financial on the transaction.
The company's assets under management grew 26 per cent year-on-year in the September quarter. Its capital adequacy ratio was 20.33 per cent as of the end of September, compared to 20.90 per cent three months earlier.