Global brokerage firm Jefferies has a ‘Buy’ recommendation on Bajaj Finance, with a price target of ₹1,280 per share.
The non banking financial company said its Board of Directors will meet on Thursday, October 1, to consider a proposal to raise fresh capital through one or more permitted routes.
The options under consideration include a preferential issue of equity shares and a qualified institutions placement, subject to applicable regulatory and statutory approvals, as well as shareholder approval wherever required.
Jefferies said Bajaj Finance’s leverage remains manageable at 4.9 times, with a healthy return on equity of 21%. The brokerage also highlighted strong loan growth of 23% CAGR, the staggered monetisation of Bajaj Housing Finance’s 87% stake and the planned management succession in March 2028 as factors that may have prompted the company to consider raising capital.
Assuming Bajaj Finance raises around 10% of its FY28 estimated net worth, Jefferies estimates the fundraise could amount to around ₹15,000 crore.
According to Jefferies, such a fundraise could increase its FY28 estimated earnings per share by around 1% and book value per share by 7%, while return on equity could taper marginally.Bajaj Finance said the Board will consider raising funds through various methods, including a preferential issue and QIP, subject to the required approvals.