From mint · Manish Joshi · · 1m
Bajaj Finance Equity Dilution Plan
Bajaj Finance's ₹17,500 crore equity raise risks short-term RoE drop.
In brief
Bajaj Finance's ₹17,500 crore equity raise risks short-term RoE drop. Bajaj Finance's planned ₹17,500 crore equity fundraising could reduce return-on-equity by 3% if priced near current market levels in FY27. Originally reported by mint.
Bajaj Finance's Equity Plan
Bajaj Finance announced a ₹11,700 crore QIP and ₹5,800 crore preferential warrant allotment to Bajaj Finserv for total ₹17,500 crore equity raise.
Current Capital Position
Bajaj Finance has 20% CRAR versus RBI's 15% minimum requirement with 9% equity requirement.
Equity Dilution Impact
Equity dilution could reduce return-on-equity by 3% and restrict EPS growth if raised near current market price in FY27.
Parent Company Pressure
Bajaj Finserv must participate to maintain 51.3% stake in Bajaj Finance as its stake would drop below majority mark.
Stock Performance
Bajaj Finance stock down 4% in 2026 versus 14% Nifty 50 index drop.
Market Valuation
Stock valuation at 23x p/e multiple could cap near-term gains without factoring new equity raise.
What to remember
Bajaj Finance's planned ₹17,500 crore equity fundraising could reduce return-on-equity by 3% if priced near current market levels in FY27.
