Bajaj Finance launches $1.25 billion share sale to fuel capital expansion

Bajaj Finance has launched a qualified institutional placement to raise up to ₹117 billion ($1.25 billion) from institutional investors, marking one of the largest equity offerings by an Indian financial firm this year.

The non-banking lender set the floor price for the transaction at ₹992.25 per share, with an indicative issue price of ₹1,025 per share. That indicative price represents a 4.99 per cent discount to the stock's closing price on Wednesday.

Proceeds from the offering will be used to clear existing liabilities, including deposits, commercial paper, non-convertible debentures, and outstanding loans, alongside covering interest payments and supporting business expansion. The fundraise underlines the strong appetite among domestic and foreign institutional investors for India's high-growth financial sector.

Structure of the capital raise

The institutional share sale is part of a broader capital expansion plan approved by the company's board on 1 October, which authorized raising up to ₹175 billion across equity and warrants.

Ahead of launching the institutional placement, Bajaj Finance secured ₹58 billion on 10 November by issuing 57.43 million warrants to its promoter and parent entity, Bajaj Finserv, at ₹1,010 per warrant. That step reinforced institutional backing for the lender's long-term balance sheet stability.

Six investment banks are managing the share sale: Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, IIFL Capital Services, Axis Capital, and JM Financial.

Momentum in domestic capital markets

The fundraise comes amidst sustained momentum in Indian capital markets, supported by economic stability and structural growth across the country's banking and credit infrastructure. Indian companies have raised approximately $50.25 billion through equity offerings so far this year, following a record $58.78 billion raised in the whole of last year. Strong corporate earnings and steady domestic retail participation continue to position Mumbai as one of the world's premier equity fundraising hubs.