Bajaj Finserv’s board has approved an investment of up to Rs 5,800 crore in warrants convertible into equity shares of its subsidiary Bajaj Finance. The investment will be made through a preferential allotment on a private placement basis. The move is aimed at supporting Bajaj Finance’s proposed capital raise.
The investment comes as Bajaj Finance plans to raise up to Rs 11,700 crore through a Qualified Institutions Placement (QIP). Bajaj Finance’s board has approved the issue of equity shares with a face value of Re 1 each to qualified institutional buyers.
Bajaj Finance will seek shareholder approval for both the QIP and the preferential issue by convening an Extra Ordinary General Meeting (EGM).
Bajaj Finserv to participate in Bajaj Finance capital raise
Bajaj Finserv said it intends to participate in the proposed capital raise by Bajaj Finance to demonstrate its support and commitment to the subsidiary. The company said its participation would also help provide confidence to prospective investors.
However, Bajaj Finserv clarified that its decision to participate is not driven by Bajaj Finance’s immediate capital requirements.
Bajaj Finserv currently holds 51.30% of the total issued and paid-up equity share capital of Bajaj Finance. The subsidiary will continue to remain under the control of Bajaj Finserv following the proposed investment.
Bajaj Finance warrants: Allotment expected within 15 days
The price of the warrants will be determined by the board of Bajaj Finance or a duly constituted committee. The issue price will have to comply with the floor price requirements under the SEBI ICDR Regulations, along with any applicable pricing adjustments.
The proposed investment will be made entirely in cash. Bajaj Finserv said the allotment of the warrants is expected to be completed within 15 days from the date of the special resolution to be passed by Bajaj Finance shareholders.
About Bajaj Finance
Bajaj Finance is a listed subsidiary of Bajaj Finserv and a deposit-taking non-banking financial company (NBFC-D) registered with the Reserve Bank of India. It is classified as an NBFC-Investment and Credit Company (NBFC-ICC).
The company reported a turnover of Rs 69,850.79 crore in FY26, up from Rs 59,379.74 crore in FY25. Its turnover stood at Rs 46,938.80 crore in FY24.
Bajaj Finance was incorporated on March 25, 1987, and has a presence across India.