Bajaj Finance will issue 57.4 million warrants to parent Bajaj Finserv at Rs 1,010 per share, the shadow lender said in an exchange filing Tuesday. The warrant issue will raise about Rs 5,800 crore ($617 million), strengthening the company’s capital base and supporting its future business expansion.
Bajaj Finance warrant issue: Valuation and pricing
The warrant issue price of Rs 1,010 is a discount of around 5.16 per cent to Bajaj Finance‘s current market price of Rs 1,065.
Based on the proposed transaction price, the company’s implied pre-money valuation stands at nearly Rs 6.29 lakh crore. Following the proposed capital infusion of Rs 5,800 crore, its implied post-money valuation is estimated at around Rs 6.35 lakh crore.
The valuation metrics also indicate a lower price-to-book (P/B) multiple for the transaction compared with the prevailing market price.
Bajaj Finance Warrant Issue: Valuation and Pricing
Based on the proposed transaction price, the company’s implied pre-money valuation stands at approximately Rs 6.29 lakh crore. Following the proposed capital infusion of Rs 5,800 crore, its implied post-money valuation is estimated at around Rs 6.35 lakh crore.
The valuation metrics also indicate a lower price-to-book (P/B) multiple for the transaction compared with the prevailing market price.
| Particulars | At CMP Rs 1,065 | At deal price Rs 1,010 |
| Price-to-Book (P/B) | 5.38x | 5.10x |
Bajaj Finance’s Rs 17,500 crore fundraising plan
The preferential warrant issue is part of Bajaj Finance’s larger Rs 17,500 crore capital-raising initiative announced on October 3, 2026.
The proposed fundraising comprises two components:
- QIP of Rs 11,700 crore: The company plans to raise equity capital from institutional investors through a Qualified Institutional Placement (QIP).
- Preferential warrant issue of Rs 5,800 crore: Bajaj Finance will issue warrants to its promoter, Bajaj Finserv Ltd.
Kotak Mahindra Capital, JP Morgan and Morgan Stanley have been appointed bankers for the transaction.
The fundraising was targeted for launch in the second half of November 2026, subject to prevailing market conditions.
Why is Bajaj Finance raising capital?
The proposed capital raise is aimed at strengthening Bajaj Finance’s capital position and providing financial flexibility to support its future business growth.
The company operates in the lending and financial services sector, where a strong capital base is important to support loan book expansion and meet regulatory capital requirements.
Notably, the proposed fundraising is expected to keep promoter shareholding broadly stable at around 51.3 per cent.
The capital raise also follows Bajaj Finance’s previous fundraising exercise of Rs 10,000 crore in November 2023.
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