"The company will be seeking approval of the shareholders for the proposed QIP and PI by convening an extra ordinary general Meeting subject to applicable provisions/circulars issued by Ministry of Corporate Affairs from time to time," Bajaj Finance said in a BSE filing.
The company plans to raise up to Rs 8,800 crore through the QIP issue, and Rs 1,200 crore via convertible warrants. Bajaj Finance will receive 25% of the total consideration from the parent during the time of subscription and allotment of warrants, while the remaining will be payable on exercise of the options against the warrants, the company said in a release.
The near-term stock performance may however remain range bound given a high valuation with FY24 expected price-book multiple (P/B) at around seven before capital infusion
Bajaj Finance had a liquidity buffer of Rs 12,704 crore as of June- end. The capital adequacy remained strong at 24.61% as of June 30, with tier-1 capital at 23.01%