Despite signalling no equity fund raise in the near future, Bajaj Finance has decided to raise ₹11,700 crore through a qualified institutional placement (QIP). Additionally, there will be a preferential allotment of warrants (convertible into equity) to the parent, Bajaj Finserv, worth ₹5,800 crore. So, the total equity funds that are proposed to be raised is ₹17,500 crore and will increase net worth by nearly 16% from Q1FY27 level (including warrant conversion). This will put pressure on return-on-equity (RoE) in the short term.
