Bajaj Finance in talks with 4 investment banks to raise $800 mn-$1 bn

Pune-based non-banking financial company (NBFC) Bajaj Finance is aiming to raise $800 million to $1 billion via QIP or preferential issue route and has shortlisted four investment banks for it, Moneycontrol reported on Monday, citing sources.

The four investment banks on the list are JM Financial, Citi, Morgan Stanley, and BofA Securities. The final decision for the fundraising is likely to be taken in the upcoming board meeting on October 5. The funds are likely to be used to improve the company's balance sheet and for growth capital, the report added.

Earlier this month, Bajaj Finance announced that it will likely discuss fundraising through various methods in its upcoming board meeting.

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In an exchange filing, it said, "Pursuant to Regulation 29(1)(d) of the SEBI Listing Regulations, we wish to inform you that a Meeting of the Board of Directors of Bajaj Finance Limited will be held on Thursday, October 5 2023 to consider, inter alia, proposal for raising of funds through any or all of various methods including by way of preferential issue, qualified institutions placement, subject to such regulatory/statutory approvals as may be required, including approval of the shareholders of the company."

In September 2019, Bajaj Finance raised Rs 8,500 crore via the QIP route, and the issue was subscribed five times. The deal saw participation from several companies, including Blackrock and GIC of Singapore.

In 2017, the firm had raised Rs 4,500 crore via the same route.

Bajaj Finance is planning to expand its product lines, including microfinance, and new car and tractor and gold loan financing. "We will enter into four-wheeler financing, tractor financing, and microfinancing in the next two to three years," Sanjiv Bajaj, chairman and managing director of Bajaj Finserv Ltd, said at a recent event in Mumbai.

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Bajaj Finserv is the holding company of several financial sector companies, with Bajaj Finance being the largest. Bajaj Finance is already into used car financing and is in the process of tying up with dealers for new four-wheeler financing.

According to brokerage firm Nomura, this will provide support to its growth aspirations.

On Monday at 10:10 am, Bajaj Finance was trading 3.87 per cent in the green at Rs 7,762 per share on BSE.