Bajaj Finance Initiates QIP To Raise $1 Bn, According To Sources

Bajaj Finance, a prominent consumer finance company, has initiated a Qualified Institutional Placement (QIP) to secure funding, setting the floor price at Rs 7,533.81 per share. Bajaj Finance aims to raise Rs 8,800 crore through the QIP, with indications suggesting a potential 4 per cent discount to the current market price, at Rs 7,250 per share.

The company has disclosed that it might offer a discount of up to 5 per cent on the floor price. Bajaj Finance had previously received board approval to raise Rs 10,000 crore, with Rs 8,800 crore to be raised through the QIP issuance and Rs 1,200 crore through convertible warrants.

In September 2019, Bajaj Finance successfully raised Rs 8,500 crore via the QIP route, attracting substantial interest and participation from investment funds, including Blackrock and GIC of Singapore. In 2017, the company had also raised Rs 4,500 crore through QIP.

Bajaj Finance's strategic focus involves expanding its product portfolio, encompassing microfinance, new car and tractor financing and gold loans, as part of its growth strategy.

On 17 October, the company reported a 27.8 per cent increase in net profit for the September quarter, reaching Rs 3,550.8 crore compared to Rs 2,781 crore in the corresponding period of the previous year. The net interest income (NII), which represents the difference between interest earned and interest paid, exhibited a substantial 26.3 per cent year-on-year growth, amounting to Rs 8,845 crore.