Bajaj Finance gains 3% as board approves raising Rs 8,500 crore via QIP

Shares of Bajaj Finance were up 3 per cent to Rs 3,464 in the early morning deals on the BSE on Wednesday after its board approved raising capital worth Rs 8,500 crore via a qualified institutions placement (QIP) route.

"The board of directors have approved, subject to shareholders approval, 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," it informed the exchanges on Tuesday, post market hours. READ FILING HERE

The approval, it said, is subject to shareholders' nod to be sought through a postal ballot.

At 9:47 am, the stock was trading 1.7 per cent higher at Rs 3424 apiece. In comparison, the benchmark S&P BSE Sensex was hovering around 36,552 levels, up 0.19 per cent. A total of 4.68 lakh shares changed hands on the NSE and BSE till the time of writing of this report. Bajaj Finserv, its subsidiary, too was trading 1.3 per cent higher at Rs 7242 per share.

In the June quarter of FY20 (Q1FY20), Bajaj Finance logged a 43 per cent jump in net profit at Rs 1,195 crore, driven by a jump in assets under management. The PAT in the previous quarter stood at Rs 836 crore. Assets under management rose 41 per cent to Rs 128,898 crore, from Rs 91,287 crore in the same quarter of the previous fiscal.