Bajaj Finance Board To Meet Today On Fund Raising Plans Of $1 Billion (Image: x.com/Bajaj_Finance)
Bajaj Finance Board to meet on Oct 5, today, to plan on its fundraising of $1 billion. The multinational conglomerate had raised funds early this month and in May too. Earlier this month, the company had raised Rs 1,195 crore through the allocation of secured redeemable Non-Convertible Debentures (NCDs) of 7.85 percent per annum. In the month of May too, it had raised near to Rs 1,700 crore through NCDs.
Bajaj Finance, a Non-Banking Financial Corporation”s (NBFC) plan is on a fundraise between $800 million to $1 billion. The fundraise could be through methods of preferential issuance of shares and QIP too, said the moneycontrol. On September 24, the NBFC has announced about its October 5 board meet.
Earlier the company had let known of its fund-raising plans, as a part of regulatory and shareholder approvals. It had also let known that the purchasing and selling window of its shares will be closed from September 22 to October 7. People who were in in know said that “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,” the Moneycontrol reported.
In the year 2019, Bajaj Finance had raised Rs. 8,500 crore through QIP, with a five time subscription. The deal had the participation of Singapore’s GIC and the global Blackrock along with other investors. In the year 2017 also, the company had raised funds in similar manner up to the tune of Rs. 4,500.
In the last six months, the stocks of Bajaj Finance have gone up by 21 percent. The funds raised are likely to be inducted as part of the growth capital and for a strengthened balance sheet of the company, moneycontrol said.
The NBFC registered a profit of Rs 3,437 crore for the first quarter of FY24, which is a 32% YoY rise. The company’s net interest income also went up by 26%, YoY, i.e. to Rs 8,398 crore. Bajaj Finance had a growth of Rs 22,718 crore in Q1, which is the highest ever quarterly Asset Under Management (AUM) growth for the company and has added the highest ever new customer base to their company to the tune of 3.84 million.
