MUMBAI – Bajaj Finance has received board approval for raising up to Rs 10,000 crore through qualified institutional placement (QIP) and convertible warrants.
The company plans to raise up to Rs 8,800 crore through the QIP issue, and Rs 1,200 crore via convertible warrants.
The company will issue 15,50,000 warrants on a preferential basis to promoter Bajaj Finserv, and this will be convertible into the equivalent number of shares. The warrants can be converted into equity shares within a period of 18 months from the date of allotment.
Bajaj Finance will receive 25% of the total consideration from the parent during the time of subscription and allotment of warrants, while the remaining will be payable on exercise of the options against the warrants, the company said in a release.
Bajaj Finserv currently holds 31,78,16,130 shares of Bajaj Finance, representing a 52.45% stake. On conversion of all the warrants, the former’s stake in the latter will move up to 52.57%.
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