On October 5, the Bajaj Finance Board will meet to discuss a potential $1 billion cash raise

5 Oct 2023 , 10:17 AM

Bajaj Finance, an NBFC, said on September 24 that its board of directors would meet on October 5 to explore raising money through various strategies, such as preferential share issuance and QIP. The company hopes to raise between $800 million and $1 billion, and it may do so via techniques like preferential issue, a qualified institutional placement, or other strategies of a similar nature.

According to the corporation, it intends to raise money, pending shareholder and regulatory permission. Furthermore, from September 22 through October 7, inclusive, the trading window for buying and selling its shares will be closed. The company raised Rs 1,195 crores earlier in September by issuing 7.85% per year secured redeemable Non-Convertible Debentures (NCDs).

Additionally, it had raised almost Rs 1,700 crore in May through NCDs. Post-market hours indicated that shareholder and regulatory approvals will both be required for the fund raising in a regulatory filing. Additionally, it stated that the trading window would be closed from September 22 through October 7 (both days inclusive).

The company had previously funded Rs 1,195 crore in September through the distribution of 7.85 percent per year secured redeemable Non-Convertible Debentures (NCDs). In May, it had also raised around Rs 1,700 crore through NCDs.

Bajaj Finance collected Rs 8,500 crore using the QIP route in September 2019, and the issuance received five subscriptions. Participants in the agreement included companies like Blackrock and GIC of Singapore. The company collected Rs 4,500 crore using the similar method in 2017.

In the previous six months, the price of Bajaj Finance shares has increased by 21%. The NBFC participant posted a consolidated profit of Rs 3,437 crore in the first quarter of FY24, an increase of 32% YoY. Additionally, to Rs 8,398 crore, its net interest income (NII) increased 26% YoY. Additionally, Bajaj Finance gained 3.84 million new customers to their franchise during Q1 and saw the highest-ever quarterly AUM increase of Rs 22,718 crore.

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