Bajaj Finance Ltd. plans to launch its Rs 8,000-crore qualified institutional placement offer within a week as it plans to boost its capital adequacy ratio and consumer lending business, according to two persons privy to the development.
The management of the non-bank lender is expected to conclude meetings with investment bankers and roadshows with domestic funds today, one of the persons cited earlier said.
Bajaj Finance refused to comment on BloombergQuint’s emailed queries on the proposal.
The company had said in an prior exchange filing that its management was meeting investors in Mumbai between Oct. 30 and Nov. 1.
The fundraise would lead to a equity dilution of 3.25-3.5 percent at current market prices, according to BloombergQuint’s calculations. The company’s tier 1 capital declined by 80 basis points to 15.5 percent as of September.
The second person cited earlier said that given Bajaj Finance’s high growth and the plans for assets under management growth moving ahead, the fundraise would boost its capital adequacy and reduce current consolidated leverage levels—which is about 6.6 times as of Sept. 30.
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