Consumer finance major Bajaj Finance has launched a Qualified Institutional Placement (QIP) to raise funds, with the floor price set at ₹7,533.81 per share. Bajaj Finance is looking to raise ₹8,800 crore via QIP, sources told CNBC-TV18. The indicative price for Bajaj Finance QIP is likely at a 4% discount to the current market price, which comes at ₹7,250 per share.

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"The QIP Special Committee (“Committee”) has, at its meeting held today, i.e., 6 November 2023, inter alia, passed resolutions for the following: a. Authorising the opening of the issue today, i.e., Monday, 6 November 2023," Bajaj Finance informed the stock exchanges.

The NBFC also informed the exchanges that it may offer a discount of up to 5% on the floor price.

The NBFC had earlier said that its board gave the nod to raise ₹10,000 crore, comprising ₹8,800 crore to be raised via QIP issue and ₹1,200 crore through convertible warrants.

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Bajaj Finance raised ₹8,500 crore via the QIP route in September 2019. The issue was subscribed to five times, and the deal saw participation from investment funds such as Blackrock and GIC of Singapore. Before that in 2017, the NBFC had mopped up ₹4,500 crore via QIP.

Bajaj Finance aims to expand its product lines, including microfinance, and new car and tractor and gold loan financing to push next level of growth, according to an MC report citing Nomura.

Bajaj Finance on October 17 reported a 27.8% increase in net profit for the September quarter, totalling ₹3,550.8 crore, compared to ₹2,781 crore in the year-ago period. The net interest income (NII), or the difference between the interest earned and the interest paid, grew 26.3% on a year-on-year basis to ₹8,845 crore.

Bajaj Finance share price settled at ₹7,560.05 crore at Monday's close of trade.

First Published:Nov 6, 2023 7:54 PM IST