Bajaj Finance seeks Sebi approval for Rs 750 crore rights issue

MUMBAI: Non-banking finance company Bajaj Finance has sought market regulator Sebi's approval to raise up to Rs 750 crore through a rights issue.

Issue of equity shares on a rights basis to its existing equity shareholders would aggregate up to Rs 750 crore, draft prospectus filed by Bajaj Finance with Sebi showed.

In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.

The company plans to use the proceeds of the issue for strengthening its capital base.

"We intend to invest the funds in high quality interest bearing liquid instruments including investment in money market mutual funds, deposits with banks and other interest/premium bearing securities for the necessary duration," Bajaj Finance said.

JM Financial Institutional Securities is acting as lead mangers to the issue, while Karvy Computershare is the registrar.

Bajaj Finance, a subsidiary of Bajaj Finserv, is engaged in the buiness of consumer finance, SME finance and commercial lending.

Earlier in August, Sebi had given its go-ahead to Bajaj Finserv to raise up to Rs 1,000 crore through rights issue.

Shares of Bajaj Finance today surged by 2.62 per cent to settle at Rs 1,362.05 apiece on the NSE.