Bajaj Finance raises $619M from promoter, plans bigger QIP
What's the deal? Bajaj Finance has allotted 57,425,740 warrants worth US$787.7M to its promoter and holding company, Bajaj FinservDealroom has a profile for this one. Try Dealroom →, through a preferential issue. The warrants were priced at US$13.7 each and are convertible into equity shares within 18 months.
How it works: Bajaj FinservDealroom has a profile for this one. Try Dealroom → will pay at least 25% of the consideration at allotment, with the remaining 75% due when it exercises the conversion option. After full conversion and accounting for employee stock options, its stake in the lender would stand at about 51.23% on a diluted basis, down marginally from 51.30%.
What's next? The warrant deal is one leg of a wider US$237.7-crore programme. Bajaj Finance also has shareholder clearance — 99.9734% support at a November 2 meeting — to raise up to US$1.59B through a qualified institutional placement (QIP). The company has not announced a launch date or final terms.
Why now? It is Bajaj Finance's first equity raise since November 2023, when it took in US$1.36B. The non-banking financial company says the capital will strengthen its base and support its next phase of expansion.
What's the context? This is growth capital, not a response to a shortfall. Assets under management grew 26% year on year to about US$79.4B in the second quarter of FY27, while capital adequacy stood at 20.33%. Kotak Mahindra Capital, Morgan Stanley, JPMorgan ChaseDealroom has a profile for this one. Try Dealroom →, IIFL Capital Services, and JM FinancialDealroom has a profile for this one. Try Dealroom → are working on the QIP, Bloomberg reported.
The signal: At roughly $619 million, the warrant allotment alone ranks in the 95th percentile of post-IPO equity rounds in Indian fintech over the past 48 months. Paired with the pending QIP, it marks a notable return to the equity market by one of India's largest lenders — driven by scale and momentum rather than a sector-wide funding squeeze.
Read more: fortuneindia.com
Image credit: Generated with Gemini
