Bajaj Finance gets board mod for Rs 8,500 crore QIP

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Published: September 18, 2019 7:15:14 AM

After its results for the June quarter, the company said that it was sitting on close to Rs 6,500 crore of liquidity buffer. Between September 2018 and June 2019, Bajaj Finance expanded its balance sheet by Rs 32,000-33,000 crore.

Bajaj Finance, board, QIP, industry news, NBFC, Equity ShareAmid an ongoing liquidity crunch in the non-banking financial companies (NBFC) space, Bajaj Finance has had less trouble raising funds.

Bajaj Finance on Tuesday received board approval to raise Rs 8,500 crore through a qualified institutional placement (QIP), the company informed the stock exchanges. “Further, for the purpose of giving effect to the above, the Board of Directors has also authorised a Special Committee of the Board to decide, inter alia, the terms and conditions of the proposed QIP, and an Allotment Committee, inter alia, for allotment of Equity Shares and/or Eligible Securities, pursuant to the QIP,” Bajaj Finance said.

Amid an ongoing liquidity crunch in the non-banking financial companies (NBFC) space, Bajaj Finance has had less trouble raising funds. After its results for the June quarter, the company said that it was sitting on close to Rs 6,500 crore of liquidity buffer. Between September 2018 and June 2019, Bajaj Finance expanded its balance sheet by Rs 32,000-33,000 crore. “We will continue to diversify our ECB (external commercial borrowings),” Rajeev Jain, managing director, Bajaj Finance said on an analyst call, adding, “We’re all set, we will probably raise anywhere between $600 million to $750 million in the current calendar year.”

At the same time, its growth has been hurt by a consumption slowdown in the economy. The company itself has decided to go slower on making disbursements in the digital products, (B2C) and SME segments.

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