Bajaj Finance unveils share sale to raise up to $1.25 billion

Bajaj Finance launched a share sale to raise as much as ₹117 billion ($1.25 billion) from institutional investors in Mumbai, according to terms seen by Bloomberg, in what would be the first major Indian equity offering since Jio Platforms’s record $3.1 billion initial public offering last month.

The offering, at an indicative price of ₹1,025 per share, represents a 4.99% discount to Wednesday’s closing price. Proceeds from the offering will be used to repay deposits, loans, commercial paper and non-convertible debentures, as well as for interest payments, among other purposes, according to the terms.

Bajaj Finance is working with Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, IIFL Capital Services, Axis Capital and JM Financial on the transaction.

The company’s board on October 1 approved plans to raise as much as ₹175 billion from a 117 billion-rupee qualified institutional placement and 58 billion rupees from warrants. Bajaj Finance on November 10 raised about ₹58 billion by allotting 57.43 million warrants to its promoter and holding company, Bajaj Finserv, at ₹1,010 apiece.

India has been one of the world’s busiest markets for equity fundraising this year, with companies raising about $50.25 billion from equity offerings so far, compared with $58.78 billion for all of last year.