Bajaj Finance trades higher on fund raising through QIP

Examining Profits

Bajaj Finance was trading at 1,808.55 per share, up by Rs 14.15 per share or 0.79% as of 1041 hours. The stock attracted a total traded volume of 4,51,632 shares and traded value of Rs 81.39 crore on NSE. The stock was outperforming the Bank Nifty index in the morning hours on Wednesday.

Bajaj Finance on Tuesday has launched a qualified institutional placement (QIP), to raise up to Rs 4,500 crore, reported a leading news agency. The company is planning to sell 26.6 million shares at Rs 1,690 each. Shareholding of the promoters of the company would come down to 55.3% after the share sale through this QIP. This price is a 5.8% discount to the previous closing price of Rs 1,794.4 per share on the NSE.

The board of the company will hold a meeting on or after September 8 to consider and approve the issue price of QIP. The company is diluting up to 4.8% of existing share capital. Kotak Mahindra Capital, JM Financial and Goldman Sachs are the book running managers for the offer. The board had approved raising up to Rs 4,500 crore through the qualified institutional placement route in its board meeting held on July 19, 2017.

Meanwhile, Nifty was trading at 9,894 level, down by 57 points or 0.58% while Sensex was trading at 31,608 level, down by 200 points.

[“Source-indiainfoline”]