Bajaj Finance Approves ₹5,800 Crore Warrant Allotment to Promoter Bajaj Finserv

Bajaj Finance on Tuesday, November 10, allotted 5.74 crore warrants worth nearly ₹5,800 crore to its promoter and holding company, Bajaj Finserv, through a preferential issue.

The company’s allotment committee approved the issue of 5,74,25,740 warrants at ₹1,010 apiece, aggregating to ₹5,799.99 crore, according to an exchange filing.

Each warrant can be converted into one equity share of Bajaj Finance with a face value of ₹1. Bajaj Finserv will pay at least 25% of the consideration at the time of allotment, with the remaining 75% payable when it exercises the conversion option.

The warrants must be converted within 18 months of allotment. Any warrants not converted within the stipulated period will lapse, with the amount already paid liable to forfeiture.

The allotment follows the company’s earlier announcement on October 1, when its board approved the proposed preferential issue to Bajaj Finserv. Shareholders subsequently approved the proposal at an extraordinary general meeting held on November 2.

Bajaj Finserv’s Stake in Bajaj Finance After Warrant Conversion

Bajaj Finserv currently holds 51.30% of Bajaj Finance, according to the company’s regulatory disclosure.

Following the conversion of all 5.74 crore warrants and accounting for employee stock options, Bajaj Finserv’s holding is expected to stand at approximately 51.23% on a diluted basis.

The warrants will carry the same rights as existing equity shares once converted.

Bajaj Finserv separately confirmed in an exchange filing that it had subscribed to the warrants issued by its listed subsidiary.

The ₹5,800 crore preferential issue forms part of Bajaj Finance’s previously announced capital-raising plans, which also include a proposed qualified institutions placement of up to ₹11,700 crore.

Also Read - IIFL Finance Approves ₹6,414 Crore Fundraise; Blackstone to Invest ₹5,000 Crore for 16% Stake