Bajaj Finance shares soar to 52-week high after good response to Rs 4,500 crore QIP

By: | Published: September 6, 2017 2:13 PM

Bajaj Finance’s Rs 4,500 QIP (qualified institutional placement) of equity shares has received bids - 3.5 times of the total offer size.

The stock of Bajaj Group’s financial services firm rose as much as 3.2% to a 52-week high of Rs 1,851.45. (Image: Reuters)

Bajaj Finance’s Rs 4,500 QIP (qualified institutional placement) of equity shares has received bids – 3.5 times of the total offer size. Shares of the Bajaj Finance advanced more than 3% on Wednesday to hit a 52-week high. Reportedly many long term investors have shown interest in the QIP of Bajaj Finance. Kotak Mahindra Capital, JM Financial, and Goldman Sachs are the book running managers for the offer. The stock of Bajaj Group’s financial services firm rose as much as 3.2% to a 52-week high of Rs 1,851.45 on NSE today.

Shares allotment

The minimum value of offer or invitation to subscribe to each eligible QIB is Rs 20,000 of the face value of the equity shares. The company will decide the issue price including a discount, if any, on or after 8 September for the shares to be allotted to qualified institutional buyers after QIP in a meeting of a special committee of the board of directors.

Proceeds of issue

Bajaj Finance said, “we intend to use the net proceeds of the issue for augmenting the Tier I capital, as long-term resources for meeting funding requirements for our business purposes, capital expenditure and for other general corporate purposes as per our company’s growth and business related plans from time to time and to meet the capital adequacy norms laid down by the Reserve Bank of India.” Neither our promoters nor the directors are making any contribution either as part of the issue or separately in furtherance of the objects of the Issue, the company added.

QIP finalisation

Earlier yesterday, Bajaj Finance authorised the opening of QIP (qualified institutional placement) of equity shares face value Rs 2 and had set the floor price at Rs 1,771.9 per share. The company said that it may offer a discount of not more than 5% on the floor price set for QIP. Way back in July 2017, the company’s board of directors has approved to raise Rs 4,500 crore through a qualified institutional placement.

Business profile

Bajaj Finance Limited is a subsidiary of Bajaj Finserv, which is a non-banking financial company. The financial services company deals in consumer finance, SME and commercial lending, and wealth management.

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