Bajaj Finance launches capital raise of up to Rs 17,500 crore

Overview Bajaj Finance, the non‑banking financial company (NBFC) that is part of the Bajaj Finserv group, has formally started work on a capital raise that could total up to **Rs 17,500 crore**. The plan, approved by the company’s board on 2 October, will combine a **qualified institutional placement (QIP)** of up to **Rs 11,700 crore** with a **preferential issue of warrants** worth up to **Rs 5,800 crore**.

Advisors and Timeline The firm has engaged three investment banks to steer the transaction: **Kotak Mahindra Capital**, **JP Morgan** and **Morgan Stanley**. The advisors have been briefed on the deal’s structure and the roles they will play. While the current syndicate is deemed sufficient, the company has indicated that additional advisors could be brought on board if needed.

A senior source said the launch is likely in **November**, preferably in the second half of the month, and that the timing will depend on prevailing market conditions. The firm’s board has already cleared the plan, and the next step is a kick‑off meeting with the advisors to outline the roadmap.

Use of Proceeds Bajaj Finance has repeatedly highlighted that the capital raised will be directed toward **growth capital**. Historically, the company has raised equity every two to three years, with the most recent raise in 2023 amounting to **Rs 10,000 crore** through a similar mix of QIP and warrants. The new raise would therefore be one of the largest equity issuances by an Indian financial services firm in recent times.

Recent Performance and Strategic Moves The company’s share price has climbed more than **14 %** over the last six months. In addition, Bajaj Finance recently acquired a **5 % stake in TrueFan AI**, an AI‑powered video generation platform, as part of its broader Finserv Intelligence initiative aimed at high‑tech, scalable solutions.

Financially, the first quarter of FY27 saw a **24 %** rise in consolidated assets under management, a **28 %** increase in profit after tax, and a **23 %** jump in net interest income.

Market Context The proposed raise follows a trend of large QIP issuances in India, such as SBI’s Rs 25,000 crore QIP launched in July 2025, the largest ever in the country. Bajaj Finance’s planned issuance would therefore join a growing list of significant equity raises by Indian financial services firms.

Next Steps The company will likely announce the exact dates and pricing of the QIP and warrant issue once the advisory team finalises the terms. Investors and market watchers should keep an eye on the November launch window and any updates from the company’s board or the appointed banks.

Conclusion Bajaj Finance’s move to raise up to Rs 17,500 crore underscores its continued focus on expanding its capital base to support growth initiatives. The combination of a QIP and warrant issue is a common strategy for NBFCs seeking to balance immediate capital needs with long‑term shareholder value.