Key Takeaways
- • Bajaj Finance launched a qualified institutional placement (QIP) of more than $1 billion on Wednesday, with a floor price of 992.25 rupees per share, according to Reuters.
- • The non-bank lender approved in October a fundraise of up to 117 billion rupees ($1.25 billion) through the QIP.
- • Assets under management grew 26% year-on-year in the September quarter, the fastest pace since the March 2025 quarter, supporting the case for expansion.
- • A day before the launch, the company approved issuing warrants worth up to 58 billion rupees to its holding company, Bajaj Finserv.
- • The capital adequacy ratio stood at 20.33% as of September-end, down from 20.90% three months earlier and 21.23% a year earlier.
Summary
India's Bajaj Finance launched a share sale of more than $1 billion to institutional investors on Wednesday, setting the floor price at 992.25 rupees per share, according to Reuters. The non-bank lender, one of the country's largest, had approved in October the raising of up to 117 billion rupees ($1.25 billion) through a qualified institutional placement. The company said the proceeds will help it expand amid strong credit demand in India.
The offering comes as the company's growth momentum remains strong. Bajaj Finance's assets under management rose 26% year-on-year in the September quarter, the fastest pace since the March 2025 quarter. Reuters reported that the company's shares ended 1.3% higher on Wednesday and are up 9% so far in 2026, supported by a broader market rally on easing crude oil prices and optimism over foreign inflows. By comparison, the Nifty 50 index is down around 3% this year.
A day earlier, Bajaj Finance approved the issuance of warrants worth up to 58 billion rupees to its holding company, Bajaj Finserv. Taken together, the equity raise and the warrant issuance represent a significant capital-raising effort by the lender.
Capital adequacy remains above regulatory thresholds but has declined over the past year. The ratio stood at 20.33% as of September-end, down from 20.90% three months earlier and 21.23% a year ago. The decline is consistent with rapid balance-sheet growth, and the new capital is likely to support further lending capacity.
All figures are as reported by Reuters, with the exchange rate at $1 = 93.7475 Indian rupees.
The offering comes as the company's growth momentum remains strong. Bajaj Finance's assets under management rose 26% year-on-year in the September quarter, the fastest pace since the March 2025 quarter. Reuters reported that the company's shares ended 1.3% higher on Wednesday and are up 9% so far in 2026, supported by a broader market rally on easing crude oil prices and optimism over foreign inflows. By comparison, the Nifty 50 index is down around 3% this year.
A day earlier, Bajaj Finance approved the issuance of warrants worth up to 58 billion rupees to its holding company, Bajaj Finserv. Taken together, the equity raise and the warrant issuance represent a significant capital-raising effort by the lender.
Capital adequacy remains above regulatory thresholds but has declined over the past year. The ratio stood at 20.33% as of September-end, down from 20.90% three months earlier and 21.23% a year ago. The decline is consistent with rapid balance-sheet growth, and the new capital is likely to support further lending capacity.
All figures are as reported by Reuters, with the exchange rate at $1 = 93.7475 Indian rupees.
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