Bajaj Finance Allots ₹776.52 Crore NCDs; Stock Jumps on Strong Demand
On Monday, Bajaj Finance witnessed an upward movement in its share price, gaining over one percent following the company’s announcement regarding the allotment of Secured Redeemable Non-Convertible Debentures (NCDs) through a private placement. The stock climbed as much as 1.15%, reaching an intraday high of ₹8,641.25 per share on the Bombay Stock Exchange (BSE). This increase in stock price followed the company’s decision to raise capital through the issuance of NCDs, signaling strong investor interest.
The company has issued a total of 7,814 NCDs, each carrying a face value of ₹10 lakh, aggregating to a total of ₹776.52 crore. These NCDs are planned to be listed on the Wholesale Debt Market Segment of the BSE, making them accessible to institutional investors. Issuing NCDs through a private placement is a widely used method by companies to raise funds efficiently without opting for public offerings. This approach allows companies to secure capital from institutional investors and high-net-worth individuals while offering structured returns in the form of interest payments.
Regulatory Filing and NCD Details
In a regulatory filing on Monday, Bajaj Finance disclosed that its Debenture Allotment Committee had approved the issuance of NCDs through a private placement. The committee, in its meeting held on March 3, 2025, formally allotted 7,814 NCDs, each with a face value of ₹10 lakh, leading to a total issue size of ₹776.52 crore. This move aligns with the company’s strategy to raise capital and strengthen its financial position by tapping into the debt market.
According to the details shared by Bajaj Finance, the recently allotted NCDs come with a residual tenure of 1,806 days, translating to approximately five years. The allotment date for these debentures is March 3, 2025, while the maturity date is set for February 11, 2030. This structured debt instrument provides a long-term capital-raising avenue for the company, ensuring financial stability and liquidity management.
Bajaj Finance has set an annual coupon rate of 7.60% per annum on these NCDs, offering investors a fixed interest return over the tenure of the debentures. The coupon payments will be made on an annual basis, with the final interest payout occurring at the time of maturity. As per the company’s stock exchange filing, these NCDs are redeemable on maturity, meaning that investors will receive their principal investment amount along with the final interest payment upon completion of the term.
The issuance of NCDs is a strategic step for Bajaj Finance, providing an alternative funding source beyond traditional equity financing. By opting for private placements, the company can secure funds with structured repayment terms, ensuring efficient capital utilization while offering attractive returns to investors.
Bajaj Finance Stock Performance and Market Trends
Despite the ongoing volatility in the Indian stock market, Bajaj Finance has continued to demonstrate strong stock performance, outpacing broader market indices such as the BSE Sensex and Nifty 50. This resilience highlights investor confidence in the company’s financial health and business outlook.
In 2025, Bajaj Finance’s stock has delivered impressive returns, significantly outperforming the overall market. On a year-to-date (YTD) basis, the stock has surged over 24%, whereas the BSE Sensex has recorded a decline of 6.8% during the same period. This contrast highlights the stock’s ability to withstand broader market fluctuations and continue delivering positive returns to shareholders.
Analyzing the performance over the past six months, Bajaj Finance shares have witnessed a gain of more than 17%, even as the Sensex experienced a notable 11.4% drop during this period. This upward trend indicates the company’s ability to navigate market challenges while maintaining strong investor interest.
Over the past one year, while the Sensex has remained relatively flat, Bajaj Finance’s stock has generated a remarkable return of nearly 31%, further reinforcing its market strength. This consistent growth has positioned Bajaj Finance as a strong performer within the financial sector, despite external market pressures.
As of 3:00 PM on the latest trading day, Bajaj Finance shares were trading 0.89% higher at ₹8,617.90 per share on the BSE, continuing their upward trajectory. This movement reflects the positive sentiment surrounding the company’s recent fundraising efforts and overall business performance.
Bajaj Finance’s recent NCD allotment is a significant move in its capital-raising strategy, allowing the company to strengthen its financial position while offering fixed returns to investors. The stock’s strong performance amid market volatility highlights its resilience and investor confidence. With the issuance of NCDs and the steady upward movement in share prices, Bajaj Finance continues to attract attention in the financial sector.
