Bajaj Finance shares in focus as QIP floor price announced; key details

Shares of Bajaj Finance Ltd will be in focus on Tuesday morning after the NBFC informed stock exchanges that it has launched a qualified institutional placement (QIP) at a floor price of Rs 7,533.81 per share in a bid to raise funds. To recall, Bajaj Finance had earlier suggested it will be looking to raise Rs 10,000 crore via a combination of QIP and preferential issue of shares. Out of this, it was looking to raise up to Rs 8,800 crore capital through a QIP and preferential issue of up to 15,50,000 warrants convertible into equivalent number of equity shares to the promoter Bajaj Finserv for an aggregate amount not exceeding Rs 1,200 crore.

Earlier on November 1, Bajaj Finance said its committee at its meeting approved the issue of 15,50,000 warrants to the promoter, at an issue price of Rs 7,670 per warrant, for an amount aggregating to Rs 1,188.85 crore in accordance with the Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

On Monday, Bajaj Finance told BSE: "We further wish to inform you that the ‘relevant date’ for the purpose of the issue, in terms of Regulation 171(b) of the SEBI ICDR Regulations, is Monday, 6 November 2023 and accordingly the floor price in respect of the aforesaid issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs. 7,533.81 per equity share."

Bajaj Finance said it may, at its discretion, offer a discount of not more than 5 per cent on the floor price so calculated for the issue, pursuant to Regulation 176(1) of the SEBI ICDR Regulations, and in accordance with the approval of the members of the company accorded through a special resolution on October 31.

It said a meeting of the QIP special committee of the board of directors is scheduled for November 9 to consider and approve the issue price, including a discount, if any.