Bajaj Finance plans to raise Rs 17,500 crore via shares and warrants

Bajaj Finance plans to raise Rs 17,500 crore through share sales and warrants to support its business growth. The company board approved a plan to collect Rs 11,700 crore through a qualified institutional placement and another Rs 16,500 crore, wait, Rs 5,800 crore through warrants for its promoter. A meeting of shareholders will be held soon to approve this proposed share placement. This is the first major fundraising effort by the company since its last capital raise in November 2023.

Context

Large non-banking financial companies often raise capital through institutional placements and promoter warrants to fund their lending operations and meet regulatory capital needs. Companies typically return to capital markets for fresh funds when they need to support credit growth over time.