Bajaj Finance, a leading non-banking financial company (NBFC), has successfully raised ₹532.55 crore through the issuance of non-convertible debentures (NCDs) via private placement. The company issued 5,000 NCDs, each priced at ₹10 lakh, with a maturity date set for February 11, 2030.
These NCDs offer an attractive annual coupon rate of 7.60%, providing investors with steady returns. Interest payments will be made annually and upon maturity, making it an appealing option for those seeking long-term fixed income.
Why This Issuance Matters
Bajaj Finance plans to list these NCDs on the wholesale debt market segment of the Bombay Stock Exchange (BSE), boosting their visibility and providing liquidity for investors. This move demonstrates the company’s strategic focus on efficiently raising funds to support future growth and expansion initiatives.
Strong Financial Performance Driving Confidence
The NCD issuance comes at a time when Bajaj Finance is already showcasing strong financial results. For the quarter ending December 31, 2024, the company reported:
- Net Profit: ₹3,706 crore, up 17% year-on-year.
- Net Interest Income: ₹13,277.33 crore, a 25% increase compared to the same period last year.
This steady growth reflects Bajaj Finance’s robust business model and its ability to generate solid returns, even in a competitive market environment.
Market Reaction
Following the announcement, Bajaj Finance shares saw a slight uptick, closing at ₹8,436.55, a modest 0.15% gain from the previous day’s ₹8,423.80. While the stock’s immediate response was mild, analysts see the NCD issuance as a positive sign of the company’s confidence in its future growth trajectory.
What’s Next for Bajaj Finance?
By raising capital through NCDs, Bajaj Finance is reinforcing its ability to fund its lending operations, expand its loan portfolio, and meet future financial obligations without relying on equity dilution. The company’s strategy of leveraging debt instruments is expected to help sustain its growth momentum while keeping borrowing costs under control.
As Bajaj Finance continues to grow its footprint across various sectors, this move is being viewed as another step toward maintaining its position as one of India’s most successful NBFCs. For investors, the company’s strong fundamentals and strategic capital management make it a key player to watch in the financial sector.
