Bajaj Finance’s Rs 4.5k crore QIP to spur lending




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              ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIESJM FinancialHindalco IndustriesBajaj FinanceEXPAND TO VIEW ALL Bajaj Finance has harnessed the current liquidity-fueled rally to raise Rs 4,500 crore in a share sale to institutional investors who would help fund the Pune-based non-banking lender’s ambitious expansion plans across the country.

              The issue was oversubscribed 4.5 times and has received participation from some of the top global long-only funds, said one of the sources aware of the subscription details. The issue also saw participation from leading domestic fund houses as well, he added.

              Bajaj Finance declined to comment on the share sale started Tuesday.

              For the issue, the non-banking finance company offered up to 5.8 per cent discount to its Monday closing price, according to the terms of the deal seen by ET. Bajaj Finance is selling up to 26.6 million shares at Rs 1,690 each, diluting roughly about 4.8 per cent of the equity of the company, according to the term sheet.

              JM Financial was the global coordinator and book running lead manager, while Kotak Mahindra Capital and Goldman Sachs were the co-book runners to the issue.

              Shares in Bajaj Finance surged 79 per cent in the last six months, outper forming the benchmark Sensex, which gained just 8.9 per cent during the same period.

              Equity capital market deals are set to make a record this year, overtaking the 2009 highs, as a liquidity-driven market rally attracts larger global firms to Indian assets, analysts said. So far, 17 companies have raised Rs 34,182 crore this year, according to data compiled by Prime Database. The institutional share issuances reached its peak in 2009, coinciding with the global financial crisis, when investors pumped Rs 34,676 crore into Indian equities.

              Financial services were at the core of institutional investors’ interest in India. Earlier in June, the country’s biggest lender, State Bank of India raised Rs 15,000 crore through a QIP , while Kotak Mahindra Bank and Hindalco Industries have raised Rs 5,000 crore each.

              India has been one of the bestperforming equity markets across Asia, with investors continuing to bet on quality companies in the continent’s third-biggest economy.

              Shares in Bajaj Finance advanced 3.9 per cent to Rs 1,857.75, bucking a 0.46 per cent decline in the broader Sensex.




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