Bajaj Finance Allots About Rs 5,800 Crore Warrants to Promoter
Bajaj Finance issued 5,74,25,740 warrants at Rs 1,010 each to its promoter Bajaj Finserv in a preferential issue.
Key Takeaways
- Bajaj Finance allotted 5,74,25,740 warrants to Bajaj Finserv at Rs 1,010 each.
- The warrants are worth about Rs 5,800 crore in total.
- At least 25% is paid at allotment and 75% at conversion, within 18 months.
- The board also approved a QIP of up to Rs 11,700 crore on October 1, 2026.
- Bajaj Finserv's stake goes from 51.30% to 51.23% on a diluted basis after full conversion.
Table of Contents 8 sections
Bajaj Finance has allotted 5,74,25,740 warrants to its promoter and holding company, Bajaj Finserv, at Rs 1,010 per warrant, for a total of about Rs 5,800 crore. A committee of Bajaj Finance's board approved the allotment on November 10, 2026, the company said in a stock exchange filing.
Each warrant can be converted into one equity share of face value Re 1. Bajaj Finserv pays at least 25% of the money when the warrants are allotted and the remaining 75% when it converts them into shares. The warrant issue is one part of a capital raise of up to Rs 17,500 crore that Bajaj Finance's board approved on October 1, 2026. The other part is a qualified institutional placement (QIP) of up to Rs 11,700 crore.
Bajaj Finance funding at a glance
| Detail | Bajaj Finance |
|---|---|
| Amount | About Rs 5,800 crore (Rs 57,99,99,97,400) |
| Instrument | Warrants convertible into equity shares, issued on a preferential basis |
| Warrants allotted | 5,74,25,740 |
| Price per warrant | Rs 1,010 |
| Payment terms | At least 25% at allotment, the remaining 75% at conversion |
| Conversion window | 18 months from allotment |
| Investor | Bajaj Finserv (promoter and holding company) |
| Allotment date | November 10, 2026 |
| Separate QIP approved by the board | Up to Rs 11,700 crore |
| Sector | Non-banking financial company (NBFC) |
| City | Pune |
How the Bajaj Finserv warrants work
The warrants give Bajaj Finserv the right to buy the same number of Bajaj Finance equity shares later. The new shares will rank equal to Bajaj Finance's existing fully paid-up shares. If Bajaj Finserv does not convert the warrants within 18 months of allotment, the money it has already paid will be forfeited to Bajaj Finance, according to the company's filing.
Bajaj Finserv held 51.30% of Bajaj Finance before the issue. The filing says that after all the warrants are converted, and after counting employee stock options, its holding will be 51.23% on a diluted basis.
What Bajaj Finance does
Bajaj Finance is a listed subsidiary of Bajaj Finserv. It is a deposit-taking non-banking financial company registered with the Reserve Bank of India.
It lends to individuals and businesses. Its products include consumer loans, personal loans, rural loans, loans against securities, SME and commercial loans, and fixed deposits. Its registered office is in Pune.
Bajaj Finance's journey so far
| When | Milestone |
|---|---|
| 1987 | Incorporated as Bajaj Auto Finance, a two-wheeler finance company |
| November 2023 | Raised about Rs 10,000 crore in equity through a QIP and warrants |
| October 1, 2026 | Board approved a QIP of up to Rs 11,700 crore and warrants of up to Rs 5,800 crore for Bajaj Finserv |
| November 10, 2026 | Allotted 5,74,25,740 warrants to Bajaj Finserv at Rs 1,010 each |
What Bajaj Finance's board approved for the Rs 11,700 crore QIP
The QIP will offer new equity shares of face value Re 1 to qualified institutional buyers, according to the board's October 1 filing. Together with the warrants, it makes up the capital raise of up to Rs 17,500 crore.
Where Bajaj Finance stands after the Bajaj Finserv warrant issue
With the warrants allotted, the Bajaj Finserv part of Bajaj Finance's plan, worth about Rs 5,800 crore, is in place, and 75% of that money is due when the warrants are converted. The QIP of up to Rs 11,700 crore approved by its board on October 1, 2026 is the remaining part. Bajaj Finserv will stay the majority owner, with 51.23% on a diluted basis after full conversion, according to the company's filing.
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Frequently Asked Questions
How much did Bajaj Finance raise from Bajaj Finserv?
Who is the investor in Bajaj Finance's warrant issue?
How many warrants did Bajaj Finance allot?
How much does each Bajaj Finance warrant cost?
How does Bajaj Finserv pay for the Bajaj Finance warrants?
How long does Bajaj Finserv have to convert the Bajaj Finance warrants?
What does Bajaj Finance do?
Where is Bajaj Finance based?
Is Bajaj Finance also planning a QIP?
How big is Bajaj Finance's total capital raise plan?
How much of Bajaj Finance will Bajaj Finserv own after conversion?
How much equity did Bajaj Finance raise in November 2023?
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