Down 10% in a month; Bajaj Finance approves ₹11,700 cr QIP, ₹5,800 cr warrants to Bajaj Finserv - Share value impact

Bajaj Finance is set to raise up to ₹11,700 crore through a QIP and ₹5,800 crore through preferential warrant issues to Bajaj Finserv. This funding aims to strengthen its capital base, with transactions totaling ₹17,500 crore pending regulatory approvals.

Bajaj Finance is gearing up for one of its biggest capital-raising exercises, with the company's board approving a QIP of up to ₹11,700 crore alongside a ₹5,800 crore preferential issue of warrants to promoter and holding company Bajaj Finserv. The move comes as the NBFC looks to strengthen its capital base, with the proposed transactions together amounting to as much as ₹17,500 crore.

The announcements came after the boards of both companies met on October 1, with the proposed fundraise subject to applicable regulatory and statutory approvals, including shareholder approval. Bajaj Finance said it would seek shareholder approval for both the QIP and preferential issue through an Extra Ordinary General Meeting.

"Raising of capital through a Qualified Institutions Placement ("QIP") for an aggregate amount not exceeding Rs. 11,700 Crore (Rupees Eleven Thousand Seven Hundred Crore only) by the issue of equity shares of face value of Re. 1 each," Bajaj Finance said in its exchange filing.

Alongside the QIP, the company approved a preferential issue of warrants convertible into an equivalent number of equity shares for an aggregate amount of up to ₹5,800 crore. The warrants will be allotted to Bajaj Finserv, which is the promoter and holding company of Bajaj Finance.

The issue price for the warrants will be determined at a later stage in accordance with applicable law. Bajaj Finance said the price would be determined by its board or a duly constituted committee and would not be below the applicable floor price under the SEBI ICDR Regulations, subject to required pricing adjustments.

The warrant issue will involve one investor -- Bajaj Finserv. Each warrant will be convertible into an equivalent number of equity shares that will rank pari passu with the company's fully paid-up equity shares. At least 25% of the consideration will be payable at the time of warrant allotment, with the remaining 75% payable when the warrants are exercised and equity shares are allotted, informed the company.

If Bajaj Finserv does not exercise its option to acquire the equity shares against the warrants within 18 months from the date of allotment, or within such other period permitted under the SEBI ICDR Regulations, the consideration amount payable will be forfeited by Bajaj Finance.

Bajaj Finserv to invest ₹5,800 crore; stock performance in focus

Bajaj Finserv separately disclosed that its board had approved subscribing to warrants convertible into an equivalent number of equity shares of Bajaj Finance for an aggregate cash consideration of up to ₹5,800 crore. The investment will be made through preferential allotment on a private placement basis.

"Considering the proposed capital raise by Bajaj Finance Limited, the Company has expressed its interest to participate in a manner that will signify its support and commitment to Bajaj Finance Limited, which in turn would lend confidence," Bajaj Finserv said.

Bajaj Finserv said the proposed subscription was not driven by the immediate capital needs of Bajaj Finance. The parent currently holds 51.30% of the total issued and paid-up equity share capital of Bajaj Finance.

Bajaj Finance is a listed subsidiary of Bajaj Finserv and is a deposit-taking NBFC registered with the RBI and classified as an NBFC-Investment and Credit Company. During FY26, Bajaj Finance generated turnover of ₹69,850.79 crore, compared with ₹59,379.74 crore in FY25 and ₹46,938.80 crore in FY24.

The proposed warrant allotment is expected to be completed within 15 days from the date of the special resolution to be passed by Bajaj Finance shareholders.

However, dilution does not automatically mean existing shareholders lose value. The impact depends on factors such as the QIP issue price, the amount raised and how effectively the company uses the funds. If the capital supports faster growth, strengthens the balance sheet or improves earnings over time, the benefit can potentially offset the dilution. If the funds do not generate sufficient returns, the increased share count can put pressure on earnings per share (EPS) and potentially affect the stock's valuation.

The NBFC stock is currently over 19% away from its 52-week high of ₹1,177.60, hit in August 2026. Meanwhile, it touched its 52-week low of ₹788.40 in March 2026. It fell 3.5% in 1 week, 10% in 1 month, and 6.5% in 3 months. Meanwhile, in the last 6 months, it added 16% but shed 4% in 1 year.

Bajaj Finserv ended 0.17% lower at ₹1,729.90 per share on BSE in the previous session.

Bajaj Finserv is currently over 21% away from its 52-week high of ₹2,194.65, hit in October 2025. Meanwhile, it touched its 52-week low of ₹1,598.15 in April 2026. It has been volatile in recent times, down 2% in 1 week and 12% in 1 month. Meanwhile, it rose 5% in 6 months, but was down around 14% in the last 1 year.