Pune-based diversified finance company Bajaj Finserv will be raising Rs 1,000 crore by December, mainly to participate in the proposed capital raising plan of its non-banking lending subsidiary, a top official has said.
"We will be raising Rs 1,000 crore before the end of the third quarter," Managing Director Sanjiv Bajaj told PTI. The money will be raised through a rights issue, he said, adding, the board has approved the proposed issue at its meeting yesterday.
The holding company, which is present in segments like lending to finance consumer durables, equipments and both life and general insurance, plans to plough the money to fund its share in its non-banking subsidiary Bajaj Finance's proposed capital raising, he said.
The listed Bajaj Finance is targeting to raise up to Rs 750 crore in the last quarter of this fiscal but is yet to firm up its mind on the route to be taken.
Bajaj also declined to comment on the route to be taken by the subsidiary.
Yesterday, Bajaj Finserv reported a 51% rise in consolidated net in the June quarter to Rs 195 crore on the back of a healthy 53% jump in Bajaj Finance's net to Rs 139 crore.
Both its insurance subsidiaries -- Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company -- ended the quarter in profit, reporting a PAT of Rs 65 crore and Rs 74 crore, respectively.
When asked if the company will contemplate taking its life insurance vertical public once regulatory clarity comes in, Bajaj replied in the negative, saying such a move is not on the cards as the company is well capitalised.
