Bajaj Finance shareholders approved a plan to raise up to ₹11,700 crore (₹117 billion) through a share placement, giving the Indian lender clearance to pursue an institutional fundraise.
The board approved the qualified institutions placement, or QIP, on Oct. 1. The resolution covers equity shares with a face value of ₹1 each for qualified institutional buyers. Shareholders passed the proposal at an extraordinary general meeting on Nov. 2; the voting results Bajaj Finance filed Nov. 4 recorded 99.9734% support among votes polled. The Oct. 1 filing made shareholder approval a condition of the proposal, which has now been met.
The company has not announced a launch date or final terms. IFR reported Nov. 10 that the placement could begin this week, citing people familiar with the transaction. Bloomberg reported Nov. 11 that it could launch within a day or two, adding that the timing and size could change.
The QIP is one part of a wider capital plan that also includes warrants worth up to ₹5,800 crore for Bajaj Finserv, Bajaj Finance’s promoter and holding company. On Nov. 10, Bajaj Finance allotted 57,425,740 warrants to Bajaj Finserv at ₹1,010 each. The allotment filing put their aggregate issue value at ₹57,999,997,400, or nearly ₹58 billion.
Each warrant can be converted into one share. The terms required at least 25% of the consideration at allotment, with the remaining 75% due when shares are issued after exercise. The exercise period runs for 18 months from allotment.
Bloomberg reported that investor roadshows had concluded and named Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, IIFL Capital Services and JM Financial as working on the transaction. The filings reviewed do not disclose the QIP’s offer price, final share count, allocation or planned use of proceeds.
