Bajaj Finance board meet on October 5 to consider up to $1 billion fund raise

In the first quarter of FY24, the NBFC player reported a consolidated profit of Rs 3,437 crore, a 32% YoY rise.

Non-Banking Financial Corporation (NBFC), Bajaj Finance, on September 24 announced that its board of directors will meet on October 5 to discuss raising funds through different methods, including preferential issuance of shares and QIP. The company aims to raise between $800 million to $1 billion and could do so through methods such as preferential issuance, QIP, or other similar means.

The company has stated that it plans to raise funds, subject to regulatory and shareholder approvals. Furthermore, the trading window for purchasing and selling its shares will be closed from September 22 to October 7, inclusive. Earlier in September, the company had raised Rs 1,195 crore by issuing 7.85% per annum secured redeemable Non-Convertible Debentures (NCDs).

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It had also raised around Rs 1,700 crore through NCDs in May. In a regulatory filing, post-market hours added that the raising of funds will be subject to regulatory as well as shareholders' approvals. It also said the trading window for dealing in its shares will be closed from September 22 till October 7 (both days inclusive).

Earlier in September, the company had raised Rs 1,195 crore through the allotment of 7.85 percent per annum secured redeemable Non-Convertible Debentures (NCDs). It had raised close to Rs 1,700 crore via NCDs in May as well.

In September 2019, Bajaj Finance raised Rs 8,500 crore via the QIP route and the issue was subscribed five times. The deal saw participation from the likes of Blackrock and GIC of Singapore. In 2017, the firm mopped up Rs 4,500 crore via the same route.

"JM Financial, Citi, Morgan Stanley and BofA Securities have been mandated by Bajaj Finance. The firm is known to do large trades every few years and this deal was kicked off over the weekend," people aware of the matter told Moneycontrol.

Two other persons confirmed the syndicate of i-banks and said the fundraising proceeds were likely to be used for growth capital and to strengthen the firm's balance sheet. The Bajaj Finance stock has risen by 21 per cent in the last six months.

In the first quarter of FY24, the NBFC player reported a consolidated profit of Rs 3,437 crore, a 32% YoY rise. Its net interest income (NII) also climbed 26% YoY to Rs 8,398 crore. Additionally, Bajaj Finance experienced the highest-ever quarterly AUM growth of Rs 22,718 crore in Q1 and also added the highest-ever new customer base of 3.84 million to their franchise.