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Bajaj Finance Share Price Surges on Capital Raise
12 Nov
Summary
- Bajaj Finance launched a ₹11,700 crore QIP at ₹1,025 per share.
- The QIP aims to bolster capital for loan repayment and general corporate needs.
- Brokerages maintain a 'Buy' rating, citing strong growth and capital accretion.
Bajaj Finance's share price experienced a significant surge of 3% on Thursday, reaching ₹1,111.25 on the BSE. This upward movement followed the non-banking finance company's (NBFC) announcement of a ₹11,700 crore Qualified Institutional Placement (QIP). The issue was launched at an indicative price of ₹1,025 per share, a slight discount to its previous closing price but above the regulatory floor.
The substantial capital raise is part of a larger ₹17,500 crore fundraising plan, with proceeds earmarked for repaying deposits, loans, and commercial papers, including associated interest obligations. The remaining funds will support general corporate purposes. This strategic move aims to enhance Bajaj Finance's capital adequacy and provide additional headroom for sustained growth.
Analysts remain optimistic about Bajaj Finance's prospects. Brokerages like ICICI Securities and Axis Securities have maintained 'Buy' ratings, citing the company's robust growth trajectory, strong operating metrics, and efficient capital management. The QIP is expected to be value-accretive, bolstering the book value per share and reinforcing the company's competitive positioning in the market.
