Bajaj Finance set to raise Rs. 8500 crore

Bajaj Finance Ltd, on Tuesday, informed the exchanges that the Board of Directors of the company, at its meeting held on September 17, 2019, approved raising of capital through a Qualified Institutions Placement ("QIP") for an aggregate amount not exceeding Rs. 8,500 crore by issue of Equity Shares and/or Eligible Securities. This is subject to shareholders approval.

The Board of Directors has also authorised a Special Committee of the Board to decide, the terms and conditions of the proposed QIP, and an Allotment Committee, for allotment of Equity Shares and/or Eligible Securities, pursuant to the QIP.

The Company will be seeking approval of the shareholders for the proposed QIP by way of a postal ballot.

Qualified institutional placement (QIP) is a popular tool to raise capital in India, through which a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer.

Shares of Bajaj Finance Limited opened in BSE at Rs.3417.70 as compared to the previous close of Rs. 3365.65. The stock hit an intraday high of Rs. 3464.00 and intraday low of Rs. 3400.00. At 12:30pm, the stock was trading at Rs. 3,448.40, up by 2.46 per cent.