Shares of Bajaj Finance Ltd. hit an all-time high on Friday after its board approved raising Rs 10,000 crore through a combination of preferential issues and qualified institutional placements.
In a meeting on Thursday, the board of directors approved the proposals to raise up to Rs 8,800 crore via QIP and up to Rs 1,200 crore via preferential issue of warrants, according to an exchange filing.
The non-banking financial company will be seeking approval of the shareholders for the proposed QIP and PI by convening an extraordinary general meeting, subject to applicable circulars issued by the Ministry of Corporate Affairs, it said.
Shares of Bajaj Finance rose as much as 4.34% during the day to a record high of Rs 8,192 apiece. It pared gains to end 4.05% higher at Rs 8,168.55 apiece, compared to a 0.55% advance in the benchmark NSE Nifty 50 at close.
It has risen 24.3% on a year-to-date basis. The total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 74, implying that the stock may be overbought.
Twenty-six out of the 35 analysts tracking Bajaj Finance maintain a 'buy' rating, four recommend a 'hold' and five suggest a 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 3%.
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