Bajaj Finance launches qualified institutional placement of Rs 8,500 crore

Bajaj Finance on Monday launched its Rs 8,500-crore qualified institutional placement (QIP). The shares will be offered in the range between Rs 3,860 and Rs 3,900 apiece. The share sale will help Bajaj Finance expand its lending at a time when non-banking finance companies (NBFCs) sector is plagued by a liquidity crisis.

The shares of Bajaj Finance ended Monday's session at Rs 4,116. The offer price is at a discount of 5.2 to 6.2 per cent to the closing price on Monday.

The share price of Bajaj Finance rose 55 per cent since the beginning of 2019, while the benchmark Sensex rose 11.8 per cent during the same period. In 2019, eight companies have raised Rs 22,312 crore through QIPs, against 25 that had raised Rs 16,587 crore in the previous year. 

JM Financial, Axis Capital, Kotak Mahindra Capital, Morgan Stanley, and Nomura are advising the company on the share sale. The QIP would make valuation reasonable with the rise in book value.