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Bajaj Finance enlists JM Financial, Nomura for QIP

The company raised capital in 2017, 2015 and 2012 when the leverage ratio had touched around this level.

, ET Bureau|
Last Updated: Sep 06, 2019, 07.42 AM IST
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Its cost of funds has been stable at 8.47 per cent.
Mumbai: Bajaj Finance has engaged investment banks Nomura and JM Financial to raise around $1.2 billion through share sale to boost capital and bring down leverage ratio, which rose to 6.6 times in the first quarter of this financial year.

“Bajaj Finance has appointed Nomura and JM Financial to raise funds mainly through qualified institutional investors,” a person close to the development told ET on condition of anonymity. “The fundraising will happen later this year.”

The company raised capital in 2017, 2015 and 2012 when the leverage ratio had touched around this level. It has total capital adequacy ratio of 19.5 per cent.

Bajaj Finance carried Rs 6,400 crore liquidity at June-end in the form of cash and cash equivalents. Its borrowings amounted to Rs 17,710 crore, with a mix of 52:48 between banks and money markets.

The company’s commentary turned cautious in the first quarter, even as it reported 43 per cent increase in net profit and 41 per cent growth in assets under management to Rs 1.3 lakh crore. Its cost of funds has been stable at 8.47 per cent.

Shares of Bajaj Finance gained 1.38 per cent on Wednesday to close the session at Rs 3,295 on the BSE.

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