Strategic Capital Update: Bajaj Finance Limited

Executive Summary On October 1, 2026, the Board of Directors of Bajaj Finance Limited approved a comprehensive capital-raising initiative aggregating up to ₹17,500 crore. This strategic move aims to fortify the company’s capital base and is structured across two primary instruments: a Qualified Institutions Placement (QIP) and a preferential allotment of convertible warrants to its promoter, Bajaj Finserv Limited. 1. Qualified Institutions Placement (QIP) Target Capital: Up to ₹11,700 crore. Instrument: Equity shares with a face value of ₹1 each. Target Investors: Restricted to Qualified Institutional Buyers (QIBs), ensuring robust institutional participation. 2. Preferential Issue of Convertible Warrants Target Capital: Up to ₹5,800 crore. Proposed Allottee: Bajaj Finserv Limited (Promoter and Holding Company), signaling strong ongoing promoter conviction. Instrument Mechanics: Issuance of warrants that are convertible into an equivalent number of equity shares (face value of ₹1 each). Upon conversion, these newly issued shares will rank pari-passu in all respects with the existing fully paid-up equity shares of the company. Capital Contribution Schedule: In strict accordance with SEBI (ICDR) Regulations, a minimum of 25% of the total consideration will be payable upfront on the date of the warrant allotment. The remaining 75% will be drawn down at the time of allotting the equity shares upon the exercise of the conversion options. Pricing: The final issue price will be determined at a subsequent stage in compliance with applicable statutory laws. Next Steps and Approvals The execution of both the QIP and the preferential warrant issue remains contingent upon shareholder approval. To seek this mandate, Bajaj Finance will convene an Extraordinary General Meeting (EGM) in the near term.