Bajaj Finance Ltd. today said it would acquire 12.6 percent stake in mobile wallet company Mobikwik as against 10.8 percent stated earlier due to a change in the conversion price of the compulsory convertible cumulative preference shares.
In August last year, Bajaj Finance had entered into a subscription agreement with One MobiKwik Systems to acquire 10.8 percent stake for about Rs 225 crore.
Due to the change in the conversion price of compulsory convertible cumulative preference shares, the company will now hold approximately 12.6 percent of the equity in Mobikwik on a fully diluted basis post-conversion of CCCPS, as and when it happens.Bajaj Finance Statement
“There is no further investment made by the company that what has been made earlier,” it added.
Under the agreement, Bajaj Finance will acquire 10 equity shares and 2,71,050 compulsory convertible preference cumulative preference shares (CCCPS) of Mobikwik.
Shares of Bajaj Finance extended decline for the seventh straight trading session and fell as much as 2.7 percent, the most in nearly a month to Rs 1,692.15 apiece. The stock trades at 50.3 times trailing 12-month earnings per share and 36 times its estimates for the coming year. It returned 86.9 percent last year, compared to 29.6 percent advance in the country's benchmark Sensex.
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