Rajiv Jain's Reappointment As Bajaj Finance VC Gets Thumbs Down From Proxy Advisory Firm IiAS
The opinion from the proxy advisory firm differs from analysts who have said that Rajeev Jain's continuity in Bajaj Finance's senior leadership should improve investor confidence.
Proxy advisory firm IiAS has recommended Bajaj Finance Ltd. shareholders to vote against the reappointment of Rajeev Jain as vice chairman and executive director, citing concerns over corporate governance and transparency.
The board has sought approval from shareholders to reappoint Jain as vice chairman for three years from April 2025 and redesignate Anup Kumar Saha as managing director from April till the remainder of his tenure in March 2028. The voting commenced on May 9 and will end on June 7.
On both proposals, IiAS marked them under its 'Governance Matters' parameter which indicates corporate governance practices that have room for improvement or are non-compliant with regulations or their intent.
It also flagged a lack of adequate disclosures supporting the resolutions and advised investors to seek further clarifications from the company to make a more informed decision.
The opinion from the proxy advisory firm differs from analysts tracking India's most valuable non-bank finance company who have said Rajeev Jain's continuity in Bajaj Finance's senior leadership should improve investor confidence and sentiment and end the long-standing uncertainty. The announcement was made in March.
Besides, IiAS recommended voting in favour of the company's proposals to issue bonus shares and split the stock in a 1:2 ratio.
The company has over seven lakh public shareholders who own 45.17% equity. Retail investors with a nominal share capital of up to Rs 2 lakh hold 6% stake.
Shares of Bajaj Finance closed 0.95% higher at Rs 9254.4 apiece on the BSE, compared to a 0.33% decline in the benchmark Sensex. The stock has risen 37% in the last 12 months and 33% on a year-to-date basis.
Out of the 38 analysts tracking the company, 22 have a 'buy' rating on the stock, 12 recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 2%.
