Bajaj Finance will pay Rs 267 crore to purchase a 26% stake in Pennant

17 Oct 2023 , 12:38 PM

For Rs 267 crore in cash, Bajaj Finance plans to buy a 26% share in Pennant Technologies. Pennant offers software and technology services to the banking and financial services sector, with a revenue of Rs 74.28 crore in FY23. According to Bajaj Finance’s regulatory filing, this is a strategic investment aimed at strengthening its technology roadmap.

At 11:35 am on October 17, Bajaj Finance stock was up roughly 0.72%, trading at Rs 8,094 on the NSE.

5.71 lakh compulsorily convertible preference shares (Series A CCPS) with a face value of Rs 100 each will be purchased by Bajaj Finance. It would also purchase 4.22 lakh equity shares from Pennant’s promoters and current shareholders. December 30 has been proposed by Bajaj Finance as a rough deadline for the acquisition’s completion.

The announcement of Bajaj Finance’s second quarter (Q2FY24) earnings, which is scheduled for later on October 17, precedes the acquisition news. With solid asset quality and strong loan growth, the non-banking financing company is anticipated to announce a substantial increase in net profit for the second quarter of FY24. Net interest income (NII) is also anticipated to increase.

The share price of Bajaj Finance has increased by more than 24% so far in 2023, outpacing that of the benchmark Nifty 50, which has increased by almost 9% during this time. The price of Bajaj Finance shares has increased by 37% during the past six months.

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