Bajaj Finance raises ₹533 crore via issuance of NCD through private placement

Bajaj Finance on Tuesday, February 4, informed exchanges that it has raised ₹532.55 crore via non-convertible debentures (NCDs).

The company's filing to the exchanges showed that issued 5,000 NCDs of the face value of ₹10 lakh each, aggregating to ₹532.55 crore. The debentures are proposed to be listed on the wholesale debt market segment on BSE.

"Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Debenture Allotment Committee of the Company has at its meeting held today i.e., 4 February 2025, allotted 5,000 NCDs, at face value of ₹10 Lakh each aggregating to ₹532.55 crore on private placement basis," Bajaj Finance said in an exchange filing.

While NCDs were allotted to investors today, the maturity will take place five years later, with the date of maturity set as February 11, 2030. The NCDs carry a coupon rate of 7.60% per annum, with the interest paid annually and on maturity.

Bajaj Finance Q3 Results

The non-banking finance company (NBFC) recently posted its Q3 financial results, wherein the company witnessed a 17% year-on-year (YoY) growth in standalone net profit to ₹ ₹3,706 crore compared to ₹3,177 crore in the same quarter a year ago.

Meanwhile, its net interest income (NII) increased by 25% YoY to ₹13,277.33 crore in Q3 FY25. The figure stood at ₹10,591 crore in the same period last year.

JM Financial following the earnings said that it believes Bajaj Finance is one of the only few large-cap companies across its financials coverage which will grow 20%+ over a couple of years (25% CAGR over FY24-27E) with healthy profitability (avg RoA/RoE of 4.1%/21% over FY25-27E). Moreover, it was the first company to proactively identify current stress in unsecured segments and therefore cut down its exposure to these segments (currently nil exposure to MFI loans).

"We believe the current valuations at 23x FY26e/18x FY27e EPS offers an attractive opportunity given its strong RoA/RoE profile and ability to grow across cycles. We roll forward our estimates to FY27E and expect earnings CAGR of 25% over FY24-27E with consistent 4%+ RoAs and 20%+ RoEs," the brokerage said while maintaining a Buy recommendation on the stock. However, it cut the target price to ₹9,350 from ₹10,000 earlier.

Share Price Trend

Bajaj Finance shares seemed on course to snap their two-day rally today and traded flat with a negative bias. The stock after rallying over 6% in two sessions, dipped 0.15% to ₹8,412.85 apiece.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.