Bajaj Finance to raise Rs 17,500 cr via QIP, preferential issue

Bajaj Finance will raise a total of Rs 17,500 crore through a mix of share sale to institutional investors via a qualified institutions placement (QIP) and warrants issued to promoters as it prepares for its next phase of growth.

This is the first equity capital raise by Bajaj Finance since November 2023 when it raised Rs 10,000 crore through a similar combination.

In a late night notice to the stock exchanges on Thursday, Bajaj Finance said that the company's board of directors had approved raising Rs 11,700 crore through a QIP and a Rs 5800 crore through the issue of warrants via a preferential allotment to promoter Bajaj Finserv.


"The company will be seeking approval of the shareholders for the proposed QIP and by convening an extra ordinary general meeting," the company said.

Issuing warrants to holding company Bajaj Finserv will help the the largest promoter group keep its stake at 51.30% in India's largest consumer finance NBFC. It also gives institutional investors the confidence to buy more shares in the company as the promoter's skin in the game helps sentiment.

"Bajaj Finance has always raised money every 2.5 to 3 years to generate capital for its immediate growth. The size of this latest capital raising is big but still relatively modest compared to the size of the company's loan book which is more than Rs 5 lakh crore. Assuming its leveraged five to six times this will mean an infusion of more than Rs 1 lakh crore capital to the company," said a analyst with a private sector brokerage.

At the end of June Bajaj Finance had reported consolidated assets under management (AUM) increase of 24% to Rs 5.47 lakh crore from Rs 4.41 lakh crore a year ago. The company added Rs 36,969 crore in AUM during the quarter largely due to strong loan growth.

Consolidated net profit increased 27% year-on-year to Rs 5,986 crore in the quarter ended June 30, 2026, from Rs 4,700 crore.

Capital adequacy ratio, was reported at 21% as of June 30, 2026.

The company's shares ended at Rs 949 a piece on the BSE on Thursday down 1.24%. The markets were shut on Friday for Mahatma Gandhi Jayanti.

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