In an exciting development, Bajaj Finance has announced its acquisition of a significant 26 percent stake in Pennant Technologies, a leading fintech firm. This strategic move underscores Bajaj Finance’s commitment to bolstering its technological capabilities.
The acquisition, valued at Rs 267.50 crore, will be executed on a fully diluted basis. Bajaj Finance will procure 571,268 compulsorily convertible preference shares (Series A CCPS) at a face value of Rs 100 each, in addition to 422,738 equity shares from Pennant’s promoters and existing shareholders. This investment is poised to fortify Bajaj Finance’s technology infrastructure, positioning it for further growth and innovation.
Pennant Technologies, a prominent player in the industry since its inception in 2005, specializes in providing tailored technology services and cutting-edge software products tailored for the banking and financial services sector.
Upon the anticipated completion of the acquisition by December 30, Pennant Technologies will transition into a related party of Bajaj Finance, signaling a new era of collaboration and synergy.
This move comes on the heels of Bajaj Finance’s successful raising of Rs 10,000 crore through a qualified institutions placement (QIP) and the issuance of preferential shares. This financial maneuver, the first of its kind in four years, is seen as a strategic response to the evolving competition in the lending space, particularly with the entry of Jio Financial Services.
Furthermore, Bajaj Finance recently unveiled its provisional quarterly business updates, revealing an impressive 26 percent surge in new loans booked in the second quarter of FY24, totaling 8.53 million, compared to 6.76 million in Q2FY23. The deposits book of the company also displayed remarkable growth, standing at nearly Rs 54,800 crore as of September 30, 2023, representing a 39 percent increase from Rs 39,422 crore in the same period last year.
Additionally, the Assets under Management (AUM) of the firm witnessed a commendable 33 percent surge, reaching approximately Rs 290,200 crore, as compared to Rs 218,366 crore in the corresponding quarter of FY23.
Investors and industry observers are keenly awaiting Bajaj Finance’s earnings announcement for the April-September quarter of Financial Year 2023-24. As of noon, Bajaj Finance was trading at 0.36 percent higher, at Rs 8,065.20 on the National Stock Exchange, reflecting a positive market sentiment towards this strategic move.
About Bajaj Finance:
Bajaj Finance Limited is a deposit-taking Non-Banking Financial Company, authorized and regulated by the Reserve Bank of India (RBI). The company maintains a diverse lending portfolio that serves retail, SMEs, and commercial clients, demonstrating a strong presence in both urban and rural regions of India.
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