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The shares of Bajaj Finance Ltd (BFL) and Bajaj Finserv Ltd (BFS) gained 4 per cent and 3 per cent, respectively during the afternoon trade on Thursday after the companies announced their plans to invest in Bajaj Finserv Direct Ltd (BFSD).
At 1:15 pm, Bajaj Finance was trading at ₹6,219.90 on the BSE, up ₹282.00 or 4.75 per cent. It had opened at ₹5,934.70 as against the previous close of ₹5,937.90. It hit an intraday high of ₹6,237.00 and a low of ₹5,925.05. On the NSE, the company was trading at ₹6,219.85, up ₹278.00 or 4.68 per cent.
Bajaj Finserv was trading at ₹13,000.40 on the BSE, up ₹409.00 or 3.25 per cent. It opened at ₹12,352 as against the previous close of ₹12,591.40. It hit an intraday high of ₹13,047.30 and a low of ₹12,348.00. It was trading at ₹13,000.00 on the NSE, up ₹402.85 or 3.20 per cent.
The companies have announced their plans to buy 19.90 per cent stake in Bajaj Finserv Direct Ltd.
The total investment envisaged by BFL is up to ₹284 crore while the investment by BFS would be up to ₹342 crore. The investments would be in the form of Equity shares and/or Convertible Loan or Security into Equity Shares.
BFSD, is a wholly-owned subsidiary of Bajaj Finserv Limited (BFS), which is also the holding company of Bajaj Finance Limited (BFL) which is a co-investor.
Presently, BFL does not hold any shares in BFSD. Post the total investment BFS would continue 80.10 per cent of the shareholding of BFSD (on a fully diluted basis). The remaining 19.90 per cent would be held by BFL.
The investment is intended to support the existing line of businesses.
Separately, the companies also recently reported their Q1 FY 2022 results.
Financial results
Bajaj Finserv reported a 31.5 per cent drop in its consolidated net profit to ₹832.77 crore for the quarter-ended June 30, 2021 as against ₹1,215.15 crore in the same period a year ago. Its consolidated total income declined by 1.7 per cent to ₹13,949 crore in the first quarter of the fiscal as against ₹14,192 crore a year ago.
Bajaj Finance reported a 4 per cent increase in its consolidated net profit for the first quarter of the fiscal at ₹1,002 crore from ₹962 crore a year ago. For the quarter ended June 30, 2021, its net interest income grew eight per cent to ₹4,489 crore against ₹4,152 crore in the first quarter of last fiscal.
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