What the board approved
On 1 October 2026, the board of Bajaj Finserv approved subscribing to warrants convertible into an equivalent number of equity shares of **Bajaj Finance Limited**, its listed subsidiary. The subscription is on a preferential-allotment, private-placement basis under Chapter V of the SEBI ICDR Regulations, for a cash consideration. Per the filing, the price per warrant has not yet been fixed — it will be determined by Bajaj Finance's board in line with the ICDR pricing rules and will not fall below the regulatory floor price. The allotment is to be completed within 15 days of a special resolution to be passed by Bajaj Finance's shareholders.
Parent backing a subsidiary's capital raise
The filing frames the move as the parent participating in Bajaj Finance's own capital raise. Bajaj Finserv said it expressed interest to participate "in a manner that will signify its support and commitment" to Bajaj Finance, which in turn would "lend confidence to the prospective investors." The company adds that the promoter's participation is "not driven on the immediate capital needs" of the subsidiary. Bajaj Finance would continue to remain a subsidiary after the transaction.
Because Bajaj Finance is a subsidiary, the subscription is a related-party transaction, but the filing states it is exempt as such under the proviso to Regulation 2(zc) of the SEBI Listing Regulations. No governmental or regulatory approval is stated to be required.
The entity involved
Bajaj Finance is a deposit-taking NBFC (NBFC-D) registered with the RBI and classified as an NBFC-Investment and Credit Company, incorporated on 25 March 1987 and operating in India. The filing discloses its turnover across the last three financial years, showing a rising trajectory. Bajaj Finserv currently holds 51.30% of its paid-up equity capital.