The Board of Directors of
Bajaj Finance Limited at their meeting held on July 20, 2021, has approved an investment up to Rs284cr in Bajaj Finserv Direct Limited (BFSD).
After the annoucement the company stock hit a day's high of Rs6221.20 per piece early on Thursday. At around 11.09 AM, Bajaj Finance Ltd was trading at Rs6,208.50 per piece up by Rs270.6 or 4.56% from its previous closing of Rs5,937.90 per piece on the BSE.
BFSD is a wholly-owned subsidiary of Bajaj Finserv Limited (BFS), which is also the holding company of Bajaj Finance Limited (BFL). BFS is a co-investor with proposed additional investments/capital infusion into BFSD. BFSD is primarily engaged in the business of distribution of financial products through the digital marketplace. Presently, BFL does not hold any shares in BFSD.
“The investment would be undertaken at an arm’s length price based on an independent valuation report. The investment has also been approved by audit committee of BFL,” the company said in a filing on Wednesday.
“The investment is intended to support existing line of businesses. The total investment envisaged by BFL is upto Rs284cr. The investment by BFS would be upto Rs342cr. The investments would be in the form Equity shares and/or Convertible Loan or Security into Equity Share,” the company said.
There would be no change in control of BFSD. The maximum percentage of shareholding proposed to be acquired by BFL in BFSD would be upto 19.90% of BFSD shareholding on a fully diluted basis. The remaining shareholding would be with BFS, it said.