Bajaj Finance Ltd., a large Indian non-bank lender, plans to raise 88 billion rupees ($1.1 billion) by selling its shares to institutional investors.
(Bloomberg) — Bajaj Finance Ltd., a large Indian non-bank lender, plans to raise 88 billion rupees ($1.1 billion) by selling its shares to institutional investors.
The company will also issue 1.55 million convertible warrants for as much as 12 billion rupees to its founder Bajaj Finserv Ltd., according to a statement filed with the stock exchanges on Thursday.
Shadow banks like Bajaj Finance have experienced growing demand for consumer loans, broadly in line with the rest of the financial sector that has seen robust credit growth. Competition in the sector is set to further heat up with newcomers like billionaire Mukesh Ambani’s Jio Financial Services entering the space.
New loans for Bajaj Finance grew 26% for the three months September, compared with a year earlier, according to a filing earlier this week. Its deposits grew 39% to 548 billion rupees during the same period.
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