Bajaj Finserv To invest Up To ₹5,800 Crore In Subsidiary Bajaj Finance

Mumbai: Bajaj Finserv on 1 October 2026 announced its board has approved a proposal to subscribe to warrants convertible into an equivalent number of equity shares of its subsidiary, Bajaj Finance Limited, for an aggregate cash consideration not exceeding ₹5,800 crore.

Subsidiary Details

Bajaj Finance Limited is a listed subsidiary of Bajaj Finserv, operating as a deposit-taking Non-Banking Financial Company (NBFC-D) and classified as an NBFC-Investment and Credit Company (NBFC) by the Reserve Bank of India. Bajaj Finserv currently holds 51.30% of Bajaj Finance's total issued and paid-up equity share capital.

Financial Performance

For the financial year ended 31 March 2026, Bajaj Finance Limited reported a turnover of ₹69,850.79 crore. In the preceding fiscal year (FY2024-25), its turnover was ₹59,379.74 crore, and in FY2023-24, it was ₹46,938.80 crore.

Transaction Structure

The proposed subscription will be executed via preferential allotment on a private placement basis. The warrants will be convertible into equity shares, with the price per warrant determined by the Board of Bajaj Finance Limited or a duly constituted committee, in accordance with SEBI ICDR Regulations.

Investment Rationale

Bajaj Finserv stated its interest to participate in Bajaj Finance's capital raise to signal support and commitment, which is expected to instill confidence among prospective investors. The company clarified that the promoter's participation is not driven by Bajaj Finance's immediate capital needs.

Completion Timeline

The allotment of warrants is expected to be completed within 15 days from the date shareholders of Bajaj Finance Limited pass the special resolution. The consideration for this transaction will be entirely in cash.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.