Bajaj Finance allots 5.74 crore warrants worth Rs 5,800 crore to promoter Bajaj Finserv at Rs 1,010 each

The Bajaj Finance warrants issue was completed on Tuesday 10 November, when the lender allotted 5,74,25,740 warrants to its parent Bajaj Finserv at Rs 1,010 each, a total of about Rs 5,800 crore, Multibagg reported from the company’s disclosure. The reports describe Bajaj Finserv as the promoter and holding company of Bajaj Finance, and it is part of the Bajaj Group.

What happened

Multibagg said Bajaj Finance allotted the warrants to Bajaj Finserv on 10 November and described Bajaj Finserv as the sole investor in the issue. Ad-hoc-news reported that the decision was taken by a committee on Tuesday 10 November and that each warrant carries an issue price of Rs 1,010. The warrants can be converted into an equal number of equity shares with a face value of Re 1, the same report said.

The Groww Digest newsletter of 10 November also carried the item, saying the warrants can be converted into shares within 18 months. None of the reports reviewed gave a share price reaction.

Key numbers

• 5,74,25,740 warrants (about 5.74 crore): the number allotted to Bajaj Finserv on 10 November, according to Multibagg.
• Rs 1,010: the issue price per warrant, according to ad-hoc-news.
• About Rs 5,800 crore: the total amount, which ad-hoc-news put at Rs 57.9999974 billion.
• Rs 1,450 crore: the upfront payment of at least 25% due on allotment, with Rs 4,350 crore payable when the warrants are exercised, according to Multibagg.
• 18 months: the window from the 10 November allotment in which Bajaj Finserv can exercise the warrants, according to Multibagg.

How the Bajaj Finserv stake works

The allotment is the promoter part of a larger plan. The Free Press Journal reported on 2 October that Bajaj Finance’s board had approved raising up to Rs 17,500 crore, made up of up to Rs 11,700 crore through a qualified institutional placement and up to Rs 5,800 crore through a preferential issue of warrants. The company said it would seek shareholder approval at an extraordinary general meeting. None of the reports reviewed for this story gave an update on the qualified institutional placement.

In a separate Free Press Journal report, Bajaj Finserv’s board approved subscribing to up to Rs 5,800 crore of warrants in cash, and the report said Bajaj Finserv holds 51.30% of Bajaj Finance’s equity. The report paraphrased the company as saying the participation is meant to signal support and commitment and is not driven by Bajaj Finance’s immediate capital needs.

Sahi reported that if the conversion option is not exercised within the 18 months, the upfront 25% is forfeited. Founders in Frame profiles the family behind the group, including Sanjiv Bajaj, and tracks the wider financial services sector. For how the country’s business families rank, see our report on the Forbes India Rich List 2026.

What it means for the promoter’s holding

Because the warrants are convertible rather than shares, Bajaj Finserv’s 51.30% holding does not change until it exercises them. When it does, the 5.74 crore warrants convert into the same number of equity shares of Bajaj Finance, which would raise the promoter’s holding. The sources reviewed did not give a post-conversion percentage, so Founders in Frame is not estimating one.

What happens next

Bajaj Finserv has until about May 2028, 18 months from the 10 November allotment, to pay the remaining Rs 4,350 crore and convert. The next signals to watch are the status of the Rs 11,700 crore qualified institutional placement and any update from Bajaj Finance on the Bajaj Finance warrants when it reports its next results.