Bajaj Finance trades firm on QIP launch

The stock was up 1% at Rs 1,811 on BSE at 10:04 am, after hitting high of Rs 1,816 in intra-day deal

Bajaj Finance was trading firm at Rs 1,811, up 1.3% at 10:04 am in otherwise weak market after the company said that it has launched a qualified institutional placement (QIP) offering up to Rs 4,500 crore from institutional investors. The company set the floor price at Rs 1,771.90 per share.

The stock has hit a high of Rs 1,816 and a low of Rs 1,780 on BSE so far. A combined 388,237 shares changed hands on the counter on BSE and NSE. in comparision, the S&P BSE Sensex was down 183 points or 0.57% at 31,627.

Bajaj Finance said in a regulatory filing that the special committee of the board of the company on September 5, 2017 passed the resolutions...And accordingly the floor price in respect of aforesaid QIP based on the pricing formula is Rs 1,771.90 per equity share.

The company may offer a discount of not more than 5% on the floor price so calculated for the QIP, it added.

Bajaj Finance intend to use the net proceeds of the issue for augmenting the Tier I capital, as long-term resources for meeting funding requirements for business purposes, capital expenditure and for other general corporate purposes as per Company’s growth and business related plans from time to time and to meet the capital adequacy norms laid down by the Reserve Bank of India.

The stock hit an all-time high of Rs 1,840 on August 29, 2017 in intra-day trade. Thus far in the calendar year 2017, it has been more than doubled from Rs 839, as compared to 19% rise in the Sensex.