Bajaj Finance shares fall 5% after capital raise plans disclosed
Business
Bajaj Finance shares slipped 5% on Thursday after the company said it plans to raise fresh capital.
It will ask shareholders for a green light at a board meeting on October 1, where a preferential issue of equity shares or a qualified institutions placement (QIP) are up for discussion.
Jefferies keeps Buy on Bajaj Finance
Even with the share drop, brokerage firm Jefferies is sticking to its "Buy" rating and sees the stock heading to ₹1,280.
It estimates Bajaj might raise around ₹15,000 crore, enough to give a small boost to future earnings and book value.
Jefferies also pointed out Bajaj's strong loan growth and management strategy as reasons for its confidence.