Sebi clears Bajaj Finance rights issue to raise up to Rs 750cr

Market regulator Sebi has given its go-ahead to the non-banking finance company Bajaj Finance's proposed rights issue to raise up to Rs 750 crore.

In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.

Bajaj Finance had filed draft documents with Sebi in November to raise up to Rs 750 crore through a rights issue.

Sebi issued its final observations on the draft offer documents on January 8 as per the latest update by the market regulator. Sebi's observations are necessary for the companies to launch rights issues.

Bajaj Finance, a subsidiary of Bajaj Finserv, is engaged in the business of consumer finance, SME finance and commercial lending.

The company plans to use the proceeds of the issue for strengthening its capital base.

JM Financial Institutional Securities is acting as lead manager to the issue, while Karvy Computershare is the registrar.

Earlier in August, Sebi had given its approval to Bajaj Finserv to raise up to Rs 1,000 crore through rights issue.