Bajaj Finance Ltd. makes a corporate announcement

On a fully executed basis, the Rs 17,500 crore equity raise could lift Bajaj Finance’s CAR from 20.90% to approximately 23.81% and Tier-1 ratio from 20.01% to approximately 22.92% — an uplift of about 2.91 percentage points in each ratio. This is an illustrative pro-forma calculation, not a company-reported estimate.

Pro-forma capital impact

Bajaj Finance’s board approved up to Rs 11,700 crore through a QIP and up to Rs 5,800 crore through warrants to Bajaj Finserv, subject to applicable approvals. ^{[1] [1]} The latest consolidated CAR was 20.90% and Tier-1 capital was 20.01% as of 30 June 2026. ^[2] Consolidated net worth was Rs 120,398 crore. ^[3]

Using net worth as a proxy for current Tier-1 capital:

• Implied risk-weighted assets = Rs 120,398 crore / 20.01% = approximately Rs 601,691 crore.
• Incremental capital ratio from Rs 17,500 crore = Rs 17,500 crore / Rs 601,691 crore = approximately 2.91 pp.
• Illustrative pro-forma Tier-1 ratio = 20.01% + 2.91 pp = 22.92%.
• Illustrative pro-forma CAR = 20.90% + 2.91 pp = 23.81%.

Fit with AUM growth guidance

Management’s stated AUM growth corridor was 22%-24%, excluding the SME business. ^[4] Against consolidated AUM of Rs 546,944 crore as of 30 June 2026, that implies, mechanically:

• 12-month AUM: approximately Rs 667,272-678,211 crore.
• Incremental AUM: approximately Rs 120,328-131,267 crore.
• 18-month annualized run-rate: approximately Rs 737,026-755,224 crore, assuming the 22%-24% rate compounds for 18 months. This is an analyst-derived scenario, not explicit 18-month management guidance.

The Rs 17,500 crore raise equals about 3.20% of current AUM and roughly 13%-15% of the implied 12-month incremental AUM. The raise therefore provides meaningful solvency headroom for the targeted growth, but it does not fund the entire AUM expansion: an NBFC finances most incremental lending through borrowings and deposits, while equity supports the required capital against risk-weighted assets.

Analyst read: the fundraise is best viewed as a capital buffer that reduces the risk of CAR compression as the balance sheet expands, rather than as a standalone liquidity source. Management has also said that profit growth should run faster than balance-sheet growth, which would allow retained earnings to supplement the new equity. ^[5] The exact pro-forma ratios will depend on the final issue structure, regulatory recognition of the warrants, deployment of proceeds and the increase in risk-weighted assets; the board resolution itself does not provide those inputs.

The board-approved fundraise is split as follows:

• QIP: up to Rs 11,700 Crores
• Preferential issue of warrants: up to Rs 5,800 Crores
• Total proposed raise: up to Rs 17,500 Crores ^[6]

The cited announcement also says the proposals were subject to regulatory clearances and shareholder approval at an EGM ^[6].

Warrant terms: The cited disclosure summary does not state the warrant conversion deadline, conversion period, or the applicable pricing floor. Accordingly, the exact timeline and minimum issue/conversion price cannot be reliably specified from the cited material.