Bajaj Finance to mobilise ₹175 billion through QIP and preferential warrants

Bajaj Finance Limited has announced plans to raise up to ₹175 billion through a dual capital-raising strategy comprising a qualified institutional placement (QIP) and preferential warrant issuance.

The company intends to mobilise ₹117 billion through the QIP route, which allows listed firms to issue securities to institutional investors without seeking prior shareholder approval for each tranche. An additional ₹58 billion will be raised through preferential warrants to be offered to promoter and holding company Bajaj Finserv.

The capital infusion is expected to bolster Bajaj Finance's equity base and provide resources for business expansion, product diversification, and technology investments. The non-banking financial company, which offers consumer finance, two-wheeler loans, and other credit products, has been expanding its footprint across retail lending segments.

The QIP route enables faster capital raising compared to traditional rights issues, while the preferential warrant issuance to the promoter group provides flexibility in capital structure management. The timing of the capital raise underscores growing investor appetite for financial services players amid India's sustained credit demand.

Detailed terms, including issue pricing and timeline for the offerings, are expected to be finalised following regulatory approvals and board decisions.