Breaking News
1. Massive fire at Varanasi railway station parking, over 200 vehicles gutted      2. First Sambhal, Then Ajmer: Ex-CJI Chandrachud Under Fire For ‘Opening Floodgates’ Of Survey Pleas      3. Chennai Airport Shut, Trains Hit As Cyclone Fengal Intensifies      4. 2nd Hindu Priest Arrested In Bangladesh Amid Protests: ISKCON Member      5. Man climbs mobile tower in Kota, threatens suicide over his tractor seizure      6. Body of 2-year-old, his grandmother recovered from river in Manipur      7. Bodies of six abducted in Jiribam found; Kerala CM and UDF leaders argue over BJP defection      8. Several flights, trains disrupted as Delhi covered in smog, visibility down      9. Delhi air quality: AQI at this Delhi station above 1500      10. Pawan Kalyan condemns deaths of 2 Hindu girls in Pakistan who faced ‘atrocities’      11. India not to travel to Pakistan for Champions Trophy, wants its matches in Dubai      12. India not to travel to Pakistan for Champions Trophy, wants its matches in Dubai      13. Samosas, cakes meant for Himachal Pradesh CM Sukhu served to his security staff instead; CID probe on      14. We remain undeterred: Australian outlet on Canada's ban after Jaishankar presser      15. 'We Are Here Only As Pilgrims, Do Our Work & Leave': CJI DY Chandrachud Bids Farewell To Supreme Court      16. PM Narendra Modi slams NC-Cong's Article 370 resolution: 'Conspiracy against Kashmir'      17. IPL Auction: James Anderson registers for first time      18. Sharda Sinha dies: Huma Qureshi, Manoj Bajpayee, and others grieve singer's death      19. Man shot in gang war outside Raipur jail, sparks outrage over security lapses      20. After MK Stalin, Udhayanidhi warns Vijay, TVK: Only DMK will win in 2026     

Bajaj Finance Boosts Tech Roadmap with Pennant Technologies Stake Acquisition

  • Posted on October 17, 2023
  • Business
  • By Arijit Dutta
  • 349 Views

In a strategic move, Bajaj Finance Ltd., India's leading non-bank lender, has inked a binding term sheet with Pennant Technologies Pvt. Ltd., solidifying plans to acquire a substantial 26% stake in the tech product company. This exchange was publicly disclosed via an official filing.

Bajaj Finance Boosts Tech Roadmap with Pennant Technologies Stake Acquisition Image Source -www.forbes.com

In a strategic move, Bajaj Finance Ltd., India's leading non-bank lender, has inked a binding term sheet with Pennant Technologies Pvt. Ltd., solidifying plans to acquire a substantial 26% stake in the tech product company. This exchange was publicly disclosed via an official filing.

The acquisition, worth a considerable Rs 267.5 crore, will be exclusively funded through cash reserves. Bajaj Finance's stake purchase will encompass 5,71,268 Compulsorily Convertible Preference Shares (CCPS), each with a face value of Rs 100, alongside 4,22,738 equity shares sourced from Pennant Technologies' promoters and existing shareholders.

Compulsorily Convertible Preference Shares offer the holder the flexibility to convert them into a fixed number of equity shares after a specified date or triggering event. Bajaj Finance's rationale for this investment revolves around fortifying its technology roadmap.

Founded in 2005, Pennant Technologies specializes in delivering technology services and software products tailored to the banking and financial services sector. Over the past three fiscal years, the company has posted turnovers of Rs 40 crore, Rs 52 crore, and Rs 74 crore, respectively.

Pending the finalization of this acquisition, expected to conclude by December 30, 2023, Pennant Technologies will evolve into a related party of Bajaj Finance, subject to specific conditions outlined in the definitive agreements.

Also Read: Universal Dignity: International Day For The Eradication Of Poverty 2023

Meanwhile, Bajaj Finance is poised to reveal its financial results for the September quarter, with expectations running high for a robust 30% increase in net profit compared to the previous year. Their quarterly business update showcases a noteworthy surge in Assets Under Management, marking the most substantial growth in four years.

Last week, Bajaj Finance gave the green light to raise Rs 10,000 crore through a Qualified Institutional Placement (QIP) and a preferential issue. An impressive Rs 8,800 crore will be amassed through the QIP, while the remainder will be generated via a preferential issue featuring up to 15.5 lakh convertible warrants, extending to promoter Bajaj Finserv.

Currently, Bajaj Finance shares have seen a 23% rise since the year's inception, hitting a 52-week high and solidifying their market position. This strategic stake acquisition positions them to stay at the forefront of the financial services industry's tech evolution.

Author
No Image
Author
Arijit Dutta

You May Also Like