Mumbai:
Bajaj Finance's Board of Directors has approved proposals to raise up to Rs 17,500 crore through a combination of Qualified Institutional Placement (QIP) and preferential issue of warrants, the company said in an exchange filing.
The board approved the proposals at its meeting held on Thursday, subject to regulatory and statutory approvals, including approval from the company's shareholders.
Under the proposal, Bajaj Finance will raise up to Rs 11,700 crore through a QIP.
A QIP is a method through which a listed company raises capital by issuing equity shares to qualified institutional buyers, subject to applicable regulations.
The company has also approved a preferential issue of warrants for an aggregate amount of up to Rs 5,800 crore.
Warrants give their holders the right to convert them into an equivalent number of equity shares, subject to the applicable terms and regulations.
Together, the two proposed fundraising routes would allow Bajaj Finance to raise up to Rs 17,500 crore.
The QIP will involve the issue of equity shares with a face value of Re. 1 each, according to the exchange filing.
The company said the proposed issue will be carried out in accordance with the applicable provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Companies Act, 2013 and other applicable laws.
For the preferential issue, the company will issue warrants convertible into an equivalent number of equity shares. The issue will also be carried out under the applicable SEBI regulations and other laws.
Bajaj Finance will seek shareholder approval for both the proposed QIP and preferential issue by convening an Extra Ordinary General Meeting (EGM), subject to applicable provisions and circulars issued by the Ministry of Corporate Affairs and SEBI from time to time.
The company said the proposals are subject to such regulatory and statutory approvals as may be required, including approval from shareholders. - ANI
