Bajaj Finance

** Shares of non-bank lender Bajaj Finance .BJFN.NS rise as much as 2.05% to 1,039.3 rupees, their highest since Feb. 23

** BJFN says in a business update after market hours on Thursday that its assets under management (AUM) grew by 24% year-on-year in the June quarter

** The update "improves our confidence in BJFN's financial year 2027 AUM growth delivery at the higher end of its guided range," says J.P.Morgan

** Terms BJFN, its preferred pick in the Indian NBFC space, reiterates "overweight" rating

** Jefferies says strong AUM growth "reflects healthy core trends and seasonally stronger demand for consumer durable loans"

** Says BJFN remains among its top picks, retains "buy"

** Average rating of 34 analysts tracking BJFN is "buy"; median price target is 1,100 rupees - data compiled by LSEG shows

** BJFN shares up 5% YTD, outperforming Nifty 50's .NSEI 7% drop and financials' .NIFTYFIN 2.4% fall - per exchange data

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

Bajaj Finance reported a 24% year‑on‑year rise in assets under management to ₹5,46,900 crore as of 30 June 2026, adding ₹36,900 crore during the April‑June quarter. Customer franchise grew by 16.8% to 124.43 million, and new loans booked increased 20% to 16.13 million compared with the same period last year. The deposit book stood at around ₹68,500 crore. The figures are provisional and subject to audit, giving investors a first look at the non‑bank lender’s operational performance for the first fiscal quarter.

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MUMBAI, July 2 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise up to 70 billion rupees ($735.51 million), including a greenshoe option of 55 billion rupees, through the sale of bonds maturing in three years and three months, and 10 years, three bankers said on Thursday.

It has invited coupon and commitment bids for the issue on Friday, they said.

The company did not immediately respond to a Reuters request for comment.

Here is the list of deals reported so far on July 2:

*Size includes base plus greenshoe for some issues

($1 = 95.1725 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra)

(([email protected], [email protected]))

MUMBAI, June 17 (Reuters) - India's Bajaj Finance BJFN.NS accepted bids worth 13.90 billion rupees ($147.28 million) for the reissue of 7.07% September 2028 bonds, three bankers said on Wednesday.

It will offer a yield of 7.80% and had invited commitment bids for the issue earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 17:

*Size includes base plus greenshoe for some issues

($1 = 94.3775 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected], [email protected]))

By Dharamraj Dhutia

MUMBAI, June 11 (Reuters) - Indian companies are rushing to raise short-term debt after the central bank's measures to support the rupee triggered a sharp fall in borrowing costs, four merchant bankers said.

Companies, led by non-banking financial firms, are raising more than 310 billion rupees ($3.24 billion) through up to five-year bonds this week, the bankers said. The supply is one-third of what was raised in April and May, according to Reuters data.

The Reserve Bank of India on Friday announced a raft of measures aimed at drawing dollars into the country, including raising subsidised deposits and incentivising banks and state-run companies to raise funds overseas.

This has pushed corporate borrowing costs lower by 40-45 basis points, per LSEG benchmark 'AAA'-rated corporate bond yields of up to five years, while the spread over government bonds has narrowed.

Corporate bond yields had risen to their highest in seven years in May.

A rise in overseas borrowings could reduce the need for local debt supply, leading to a rally in bonds below five years, said Ajay Marwaha, head of fixed income markets at global wealth firm Nuvama.

State-run REC raised three-year funds at a coupon of 7.34% earlier this week, much lower than prevailing levels in the secondary market. NABARD, another state-run financial institution, raised funds for three years at 7.34% after cancelling a similar issue in May where rates could have touched nearly 8%.

Other major non-bank lenders lining up debt sales include Bajaj Finance BJFN.NS, Muthoot Finance MUTT.NS, Bajaj Housing Finance BAJO.NS and L&T Finance LTFL.NS, with planned issuances of 85 billion rupees, 27.5 billion rupees, 20 billion rupees and 15 billion rupees, respectively.

Despite the recent rally in bonds, investor appetite remains strong on expectations of further gains.

"Investors with a more than 18-month investment horizon are looking at corporate bond funds that present an attractive investment opportunity from a relative risk-reward perspective," said Puneet Pal, head of fixed income at PGIM India Asset Management.

($1 = 95.6950 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected];))

MUMBAI, May 19 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 10.25 billion rupees ($106.18 million) for bonds maturing in 10 years, three bankers said on Tuesday.

It will pay an annual coupon of 8.08% on this issue, and had invited bids earlier in the day, they said.

The bonds will have a put option after three years.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on May 19:

*Size includes base plus greenshoe for some issues

($1 = 96.5325 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Eileen Soreng)

(([email protected]))

MUMBAI, May 18 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise up to 30 billion rupees ($311.34 million), including a greenshoe option of 10 billion rupees, through the sale of bonds maturing in 10 years, three bankers said on Monday.

It has invited coupon and commitment bids for the issue on Tuesday, they said, adding that the bond will have a put option after three years.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on May 18:

*Size includes base plus greenshoe for some issues

($1 = 96.3575 Indian rupees)

(Reporting by Dharamraj Dhutia, Khushi Malhotra; Editing by Nivedita Bhattacharjee)

(([email protected], [email protected]))

By Dharamraj Dhutia

MUMBAI, May 8 (Reuters) - Five AAA-rated non bank finance companies (NBFCs) are planning to raise as much as 150 billion rupees ($1.6 billion) through sale of bonds maturing from two years to five years, three merchant bankers said on Friday.

A drop in Indian corporate debt yields, especially for shorter term funds, has prompted companies to go back to the market after a quiet April.

Below are some of the issues likely to hit the market soon, based on information from merchant bankers, who declined to be identified as they are not authorised to speak to the media.

• Bajaj Finance aims to raise 90 billion rupees through two separate debt issuances, while Tata Capital plans to mobilise 17.70 billion rupees through a dual-tranche bond sale.

• Bajaj Housing Finance is targeting 15 billion rupees, and M&M Financial Services is looking to raise 10 billion rupees.

• Poonawalla Fincorp accepted bids worth 10 billion rupees earlier on Friday.

• None of the companies responded to Reuters' requests for comment.

• Yields on AAA-rated papers of up to five-year maturity have eased by around 15 basis points over last couple of days as oil prices have eased on hopes of a resolution to the Iran war.

• Bankers said firms are trying to front-load borrowings before volatility returns, particularly with geopolitical risks still unresolved.

• Benefit of bond funding over bank loans like tenor flexibility, better liability matching, faster rate transmission makes it favourable, Priyashis Das, CEO at a bond trading platform Altifi said.

($1 = 94.5450 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

(([email protected];))

April 30 (Reuters) - Shares of India's Bajaj Finance BJFN.NS climbed about 4.7% on Thursday after it reiterated optimism about fiscal 2027 profits and maintained its long-term growth forecast despite the current slowdown in small business lending.

The non-bank lender's shares were trading at 973.50 rupees at 9:23 a.m. and were the top gainer on the benchmark Nifty 50 index .NSEI.

(Reporting by Urvi Dugar in Bengaluru)

(([email protected]; +91 9558725583;))

BENGALURU, April 29 (Reuters) - Diary of India economic, corporate events on April 29

ECONOMIC, CORPORATE .BSE500 EVENTS:

NTS - 'No time scheduled'

(Compiled by Bengaluru Newsroom)

(([email protected]))

MUMBAI, April 17 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 20.04 billion rupees ($216.16 million) for bonds maturing in three years, three bankers said on Friday.

It will pay an annual coupon of 7.77% and had invited bids for the issue on Thursday, they said.

The company did not immediately respond to a Reuters' email seeking comment.

Here is the list of deals reported so far on April 17:

* Size includes base plus greenshoe for some issues

($1 = 92.7075 Indian rupees)

(Reporting by Dharamraj Dhutia)

(([email protected]))

April 3 (Reuters) - Bajaj Finance Ltd BJFN.NS:

• AUM GREW BY 22% AS OF 31 MARCH 2026

• NEW LOANS BOOKED GREW BY 20.5% Y/Y IN Q4 FY26

Source text: ID:nBSE75CNQQ

Further company coverage: BJFN.NS

(([email protected];;))

** Non-bank lenders Shriram Finance SHMF.NS and Bajaj Finance BJFN.NS rise 2% and 1%, while shadow lenders such as LIC Housing Finance LICH.NS, Muthoot Finance MUTT.NS and Jio Financial JIOF.NS gain 1.5%-2.5%

** Rise amid a CNBC-TV18 report that the Reserve Bank of India is not considering any proposal to cap the tenure or implement a force rotation of the top management of NBFCs

** CNBC-TV18's report follows market speculation that the central bank is contemplating such a move

** BJFN lost 10% last week, taking their three-week drop to about 18%; SHMF lost a modest 0.4% last week

** In a note dated March 10, 2026, Macquarie analysts led by Suresh Ganapathy said that such a regulation "could impact SHMF followed by BJFN and force them to plan for leadership transitions in the near to medium term"

** India's financials .NIFTYFIN lost 5.7% last week as benchmarks logged their worst week in years and confirmed correction, on higher crude prices due to the Middle East conflict, which renewed concerns over economy and earnings

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

MUMBAI, Feb 18 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 25 billion rupees ($275.67 million) for bonds maturing in three years and one month and in five years, three bankers said on Wednesday.

It will pay an annual coupon of 7.40% and 7.55% on these issues and had invited coupon and commitment bids earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 18:

*Size includes base plus greenshoe for some issues

($1 = 90.6880 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([email protected]))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

February 17 - By Ira Dugal, Editor Financial News, with global Reuters staff

Global tech leaders have descended on New Delhi this week as India hosts its first major artificial intelligence summit. The timing of the meet could not be better, as the ramifications of the AI boom are under heavy scrutiny. That's our focus this week.

As AI use expands, what kinds of safeguards do you believe are essential for India? Write to me at [email protected].

And Indian investors pile into gold ETFs as returns from the metal outpace equity gains. Scroll down for more on that.

THIS WEEK IN ASIA

** US military preparing for potentially weeks-long Iran operations

** Foreign cars flow to Russia through China, skirting Ukraine war sanctions

** After Gen Z uprising, Bangladesh vote shows limits of youth power

** ByteDance developing AI chip, in manufacturing talks with Samsung, sources say

** China's Lunar New Year travel rush is world's biggest annual migration

AI BIGWIGS HIT NEW DELHI

AI royalty — from OpenAI's Sam Altman to Google's Sundar Pichai — has descended on New Delhi for the revolving AI Impact event being hosted by India for the first time.

The summit, which lists "people, planet and progress" as its focus, is expected to feature agenda-setting discussions ranging from the impact of AI on daily lives, to how it is reshaping jobs and the environment.

Demand for services around the week-long event has surged: airfares have jumped, luxury hotels are charging up to $2,000 a night, and the venue is expected to be packed with everyone from top politicians to global business leaders.

Nvidia CEO Jensen Huang pulled out, though, due to "unforeseen circumstances".

India, widely seen as a laggard in AI despite its vast pool of tech talent, is racing to build out its AI capabilities, in what it sees as a $130 billion opportunity by 2032. Companies such as Google and OpenAI are now targeting the world’s most populous nation as their next major growth market.

With more than 800 million internet users and abundant data, India is a tantalising prospect for AI's growth, but it won’t be easy, Reuters Breakingviews columnist Ujjaini Dutta wrote in this piece.

The summit coincides with growing worries of AI’s disruptive power in markets at home and abroad. Stocks across India's IT sector have been pummelled recently on such worries.

And Indian regulators are trying to balance the technology’s risks and rewards.

One of the biggest risks for India - where formal jobs remain scarce - is the potential hit to employment. Call centres, a mainstay of India’s services economy, are already feeling the impact. Reuters journalists Munsif Vengattil and Aditya Kalra reported on the new wave of AI chatbots replacing human agents.

“Rapid, uncalibrated deployment of AI may boost output but risks displacing segments of the workforce faster than the economy can reabsorb them,” Chief Economic Adviser to the Indian government V. Anantha Nageswaran warned in a report last month.

Nageswaran flagged two other concerns: the opacity of many AI models, and the heavy demand for data centres — infrastructure that could strain an already resource‑constrained economy.

The India File explored these risks in an earlier edition; Catch up here if you missed it.

GROWING DISCOMFORT

Amid the AI fanfare, authorities' concerns about the technology have grown.

In revised rules released earlier this month, the government for the first time defined AI‑generated content and placed responsibility on social media platforms to ensure such material is clearly labelled. The changes accompanied a wider requirement to remove any unlawful content within three hours, down from the earlier 36‑hour deadline.

Financial regulators are also becoming more cautious. The Reserve Bank of India has asked lenders to adopt board‑approved policies governing the use of AI and to make information on AI models available for internal and external audits when required.

It has also said models used in financial decision‑making must include human oversight, and that the use of AI in products and services should be clearly disclosed.

The draft rules come as AI adoption accelerates in the financial sector.

Bajaj Finance BJFN.NS, India’s largest non-bank consumer lender by assets, last week disclosed increased use of AI in its operations.

On its earnings call, the company said it had used AI to analyse 20 million customer calls by converting voice to text to generate actionable insights, leading to 100,000 new offers where information was previously unavailable. It plans to expand AI‑driven identification of lending opportunities.

Market regulator SEBI has also signaled caution, requiring stronger oversight and enhanced disclosures around the use of AI in areas such as algorithmic trading, asset management, portfolio management and advisory services.

The caution is warranted as risks related to AI-driven decision-making grow.

A global EY survey of 975 C-suite leaders across 21 countries in October showed that nearly every company therein had already suffered financial losses from AI-related incidents, with average damages conservatively topping $4.4 million.

MARKET MATTERS

Indian investors are piling into gold exchange-traded funds (ETFs) at the fastest pace on record, with inflows into such funds overtaking flows into equity investments for the first time.

Flows to gold ETFs more than doubled in January from the previous month to 240.4 billion rupees ($2.66 billion), while equity flows fell 14% month-on-month.

Read here for more.

The demand for gold ETFs, which are backed by physical gold, was one factor that led to a surge in imports of the metal into India in January and widened the trade deficit.

THIS WEEK'S MUST-READ

India's decision to open up small sections of the farm sector as part of the U.S.-India interim trade framework has sparked protests from farmer groups in the country.

Thousands of Indian farmers protested across the country on Thursday, alleging the government had compromised their interests.

If the protests spiral, they could pressure the Narendra Modi-led government, which in the past has had to reverse planned changes to farm laws due to pushback from the politically powerful farm lobbies.

Read this explainer to understand the impact of the U.S.-India trade pact on the farm sector.

($1 = 90.5250 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

MUMBAI, Feb 11 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 5 billion rupees ($55.1 million) for bonds maturing in two years, three bankers said on Wednesday.

It will pay an annual coupon of 7.31% on this issue and had invited coupon and commitment bids earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 11:

*Size includes base plus greenshoe for some issues

($1 = 90.7275 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([email protected]))

MUMBAI, Feb 10 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise 10 billion rupees ($110.24 million), including a greenshoe option of 5 billion rupees, through the sale of bonds maturing in two years, three bankers said on Tuesday.

It has invited coupon and commitment bids for the issue on Wednesday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 10:

* Size includes base plus greenshoe for some issues

($1 = 90.7140 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Eileen Soreng)

(([email protected], [email protected]))

** India's Bajaj Finance BJFN.NS reports drop in quarterly profit due to accelerated provisioning and one-off costs (Full Story)

** Shares trading flat at 965.55 rupees

ONE-OFF PROVISIONS HIT PROFIT, CORE BUSINESS HOLDS UP

** Jefferies ("buy", PT: 1270 rupees) says December-quarter profit missed estimates due to one-time provisions and labour-law costs, but adds core profit rose about 23% y/y after adjusting for one-offs

** Brokerage says loan growth moderated to 22% y/y, but asset quality improved and credit cost guidance is encouraging; maintains BJFN as a top pick

** Antique Stock Broking ("buy", PT:1070 rupees) says higher provisions dented profit, but views the move as a prudent step that should support asset quality over the medium term

** Ambit Capital ("sell", PT 713 rupees) says tighter credit loss norms reset credit costs structurally higher and delay recovery to 20% RoE, citing rising competition from banks

** Emkay Global Financial Services ("reduce", PT: 950 rupees) says spike in provisions largely discretionary, underlying business momentum remains intact, with improving bad-loan trends and steady profitability outlook

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

Feb 3 (Reuters) - Bajaj Finance Ltd BJFN.NS:

• BAJAJ FINANCE Q3 CONSOL NET PROFIT 39.78 BILLION RUPEES

• BAJAJ FINANCE Q3 CONSOL INTEREST INCOME 186.56 BILLION RUPEES

Further company coverage: BJFN.NS

(([email protected];))

MUMBAI, Jan 27 (Reuters) - India's Bajaj Finance BJFN.NS accepted bids worth 51.20 billion rupees ($558.10 million) for staggered redemption bonds maturing in eight to 10 years, three bankers said on Tuesday.

It will pay a coupon of 7.65% and had invited commitment bids for the issue on Friday, they said.

The company did not respond to a Reuters email seeking confirmation of the transaction.

Here is the list of deals reported so far on January 27:

*Size includes base plus greenshoe for some issues

($1 = 91.7400 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; editing by Rashmi Aich)

(([email protected], [email protected]))

MUMBAI, Jan 23 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise up to 55 billion rupees ($600.47 million), including a greenshoe option of 45 billion rupees, through the sale of staggered redemption bonds maturing in eight to 10 years, three bankers said on Friday.

It has invited coupon and commitment bids for the issue later in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on January 23:

*Size includes base plus greenshoe for some issues

($1 = 91.5950 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Janane Venkatraman)

(([email protected], [email protected]))

** Shares of non-banking financial co Bajaj Finance BJFN fall 1% to 979 rupees

** Co in a business update says asset under management (AUM) grew by 22% as of December 31 to 4.86 trillion rupees ($53.83 billion)

** BJFN says its customer franchise as of December 31 stood at 115.40 million, up ~19% Y/Y

** New loans booked grew by 15% in Q3 FY26, co says

** Brokerage Jefferies says AUM growth moderated at the lower end of guidance shared during last qtr due to slower growth in housing, run-down of captive 2W/3W and SME loans

** Loan growth moderates as guided in Sep qtr - Jefferies

** Brokerage says co stays among top picks; has a "buy" rating on co with PT at 1,270 rupees

** BJFN rated "hold" on avg by 33 analysts covering it; median PT at 1,095 rupees - data compiled by LSEG

** BJFN gained 44% in 2025

($1 = 90.2663 Indian rupees)

(Reporting by Komal Salecha)

(([email protected];))

Adds table of Nomura's sectoral view and top picks, no changes to text

By Bharath Rajeswaran

Dec 2 (Reuters) - Nomura expects India's benchmark Nifty 50 .NSEI to climb to 29,300 by end-2026, about 12% above current levels, as cyclical economic momentum and earnings growth regain traction under supportive policies, its analyst Saion Mukherjee said.

Mukherjee said in a note on Tuesday that the brokerage dropped its valuation concerns in May 2025 after markets steadied from the tariff-driven selloff triggered by the U.S. hike in import duties.

Calmer geopolitics, a firmer macro backdrop and signs of a cyclical pickup now reinforce the case for higher valuations, he added.

The research firm's outlook echoes similar 2026 calls from HSBC and J.P.Morgan , coming as the Nifty 50 and Sensex .BSESN hit record highs last week for the first time in 14 months supported by improving earnings, steadier valuations, resilient domestic inflows and firm economic growth.

The brokerage said India's relative underperformance over the past year has helped valuation premiums normalise, with strong local flows anchoring market stability.

It expects policy support aimed at growth, self-reliance and structural reforms to keep the medium-term outlook constructive.

Nomura warned, however, that narrative-driven stocks with stretched valuations may deliver no returns, urging a selective, bottom-up approach.

It favours commercial vehicles, pharma, IT and non-bank lenders and is overweight on financials, consumer discretionary, real estate, internet, cement, telecom and manufacturing. It remains cautious on consumer staples, infrastructure, capital goods and healthcare services, and neutral on autos.

Top picks for 2026 include ICICI Bank ICBK.NS, Axis Bank AXBK.NS, Infosys INFY.NS, UltraTech Cement ULTC.NS, Mahindra & Mahindra MAHM.NS and Bajaj Finance BJFN.NS. The firm also flagged global threats from rising risk premiums, commodity spikes and geopolitical or macro shocks.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Nivedita Bhattacharjee)

(([email protected]; +91 9769003463;))

MUMBAI, Nov 11 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 18.35 billion rupees ($208.77 million) for the reissue of 7.37% September 2030 bonds, three bankers said on Tuesday.

The company will offer a yield of 7.25% on this issue, and had invited bids earlier in the day, they said.

Bajaj Finance did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on November 11:

*Size includes base plus greenshoe for some issues

($1 = 88.57 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([email protected]))

MUMBAI, Nov 10 (Reuters) - India's SMFG India Credit Company plans to raise up to 14 billion rupees ($157.92 million), including a greenshoe option of 5 billion rupees, through the sale of three-year floating-rate bonds, two bankers said on Monday.

The coupon rate will be a spread of 161 basis points over 12-month overnight index swaps, they said. It has invited commitment bids for the issue on Tuesday.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on November 10:

* Size includes base plus greenshoe for some issues

($1 = 88.70 Indian rupees)

(Reporting by Dharamraj Dhutia)

(([email protected]))

Nov 4 (Reuters) - Bajaj Finance BJFN.NS:

• RECORDS 27% SURGE IN FESTIVE LOAN VOLUME

• FESTIVE LOAN SURGE ON POSITIVE IMPACT OF GST REFORMS, CHANGES IN PERSONAL INCOME TAX

Source text: ID:nBSE3tWqvc

Further company coverage: BJFN.NS

(([email protected];))

Add details from paragraph 3

By Vivek Kumar M and Yagnoseni Das

Oct 13 (Reuters) - Tata Capital TATC.NS, India's third-largest non-bank lender by revenue, was muted in its debut trade on Monday, valuing the firm at 1.4 trillion rupees ($15.78 billion), with investors seemingly not that keen on the first listing by the storied Tata Group in nearly two years.

Tata Capital's subdued debut has come in a busy IPO market, where analysts say investors appear to be favouring LG Electronics India's LGEL.NS $1.3-billion share sale as they expect stronger listing gains and near-term growth, helped by recent tax cuts.

As of 10:57 am, Tata Capital shares traded at 329.8 rupees, slightly higher than their offer price of 326 rupees. Its market capitalization at the current price trails Bajaj Finance BJFN.NS and Jio Financial Services >, which are valued at $72 billion and $22 billion, respectively.

Tata Capital's IPO was fairly priced but the lack of a major valuation discount to its listed peers was one of the key factors for the tepid response, said Ambareesh Baliga, an independent market analyst.

"This is probably the first time we have seen such muted demand for an IPO from Tata Group," Baliga said.

Strong interest in LG Electronics India's IPO and negative news surrounding the Tata Group, including boardroom turmoil, also weighed on demand for Tata Capital's share sale, said Dhiraj Relli, CEO at HDFC Securities.

Last week, while Tata Capital got bids worth $2.9 billion for its IPO, LG Electronics India's public issue, which opened a day later, received nearly $50 billion worth of bids.

LG will start trading on October 14, while WeWork India, which made its debut last week, fell as much as 5.2% as investors stayed wary of its steep valuation and governance risks.

The last IPO from the salt-to-software Tata Group was by engineering and technology services provider Tata Technologies TATE.NS in November 2023, which listed at a premium of 140% to its issue price.

($1 = 88.7420 Indian rupees)

(Reporting by Yagnoseni Das and Vivek Kumar M in Bengaluru; Editing by Sonia Cheema)

(([email protected];))

Adds analyst quote in paragraph 5, updates subscription levels

By Yagnoseni Das

Oct 8 (Reuters) - Tata Capital's TATC.NS $1.75 billion public share sale was fully subscribed on Wednesday, the final day of a three-day bidding process, buoyed by institutional demand as investors lined up for India's biggest offering this year amid a rush of new listings.

The Tata Group company is India's third-largest non-bank lender in terms of revenue, trailing Shriram Finance SHMF.NS and Bajaj Finance BJFN.NS, which holds the top position.

The IPO drew bids worth 109.70 billion rupees ($1.24 billion), driven by qualified institutional buyers who bid for 1.2 times their reserved portion.

Non-institutional investors bid for over 1.13 times their quota, while retail investors subscribed 0.84 times, exchange data showed.

Tata Capital’s IPO saw muted demand across investor segments as attention shifted to LG Electronics India's LGEL.NS $1.3 billion-rupee offering on Tuesday, which promises both short-term listing gains and long-term growth, said Prashant Tapse, senior vice president of research at Mehta Equities

The Mumbai-based financial services company raised $523.2 million from anchor investors, including LIC and Norway's wealth fund last week, and is seeking a valuation of up to $15 billion.

The IPO comes at a bustling time for domestic listings, with the October-December quarter set to see $8 billion worth of fundraising, the second busiest on record, and several big-ticket share sales.

The offerings could push 2025’s total IPO tally closer to last year’s $20 billion record raised from 267 offerings.

Tata Capital, which is set to list on October 13, issued up to 210 million new shares, while existing shareholders offloaded up to 265.8 million shares.

The Tata Group company's valuation seems "reasonable" compared to peers like Bajaj Finance and Shriram Finance, Tapse said.

($1 = 88.7720 Indian rupees)

(Reporting by Yagnoseni Das, Vivek Kumar M in Bengaluru; Editing by Rashmi Aich, Harikrishnan Nair and Sonia Cheema)

(([email protected];))

** Share of non-bank lender Bajaj Finance BJFN.NS rise as much as 3.36% to 1023 rupees apiece; stock last up 2.5%

** BJFN says its customer franchise as of September 30, stood at 110.64 million, up 20% Y/Y

** Assets under management rise 24% Y/Y to 4622.5 billion rupees as of September 30

** BJFN's pre-quarter update remains healthy and in line with our estimates, says Jefferies, while reiterating its "Buy" rating

** Adds recent goods and services tax (GST) cuts will likely aid growth momentum in the second half of fiscal year 2026, and terms BJFN as one of its top picks

** The average rating of 31 analysts tracking BJFN is "buy"; the median price target is 1000 rupees, data compiled by LSEG shows

** BJFN shares are up 45.3% in 2025 so far, outperforming the benchmark Nifty 50 .NSEI 5.7% rise, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Sept 29 (Reuters Breakingviews) - India's financial technology startups are lining up for credit. Among them is Walmart-backed WMT.N payments champion PhonePe, which on Wednesday said it has confidentially filed for an initial public offering in Mumbai. A mooted $15 billion valuationlooks punchy, but its shot at grabbing the ultimate fintech prize in the country is half decent.

The U.S. retailer owns about 84% of the startup, which it acquired as part of its 2018 acquisition of e-commerce platform Flipkart. PhonePe's target valuation would imply a multiple of 13 times sales for the year to end March 2026, assuming its topline grows at the same 40% pace as it did in the previous year. That compares to 9 times Paytm-owner One97 Communications PAYT.NS commands among investors.

PhonePe is superior in multiple ways. Though Paytm swung to profit in the June quarter, PhonePe's losses are narrowing and it has faced none of the regulatory heat that has mired its rival. The Walmart unit also enjoys a 46% share in transactions passing through India's homegrown bank-to-bank mobile payments system, where its closest competitor is an application owned by Alphabet's GOOGL.O Google.

Yet simple payment transactions earn no fees in India. To profit, PhonePe needs to gradually convert its 200 million monthly active users and 40 million-strong merchant network into customers of financial products, from loans to insurance and mutual funds.

It's a promise that Paytm is starting to realise. Its revenue from financial services distribution doubled during the year to end June and accounted for 29% of its quarterly topline. PhonePe, by virtue of its bigger share of payments, ought to have a larger database spanning utility bill payments to restaurant outings that it can leverage to decide who is creditworthy.

The upstart will probably churn out a different, slightly lower, class of customer to those chased by India's traditional lenders, including HDFC Bank HDBK.NS and ICICI Bank ICBK.NS. They already have strong digital sourcing engines, however, so there will be some overlap in who they target. And the $72 billion Bajaj Finance BJFN.NS has a formidable grip on the consumer loan market too that's proven hard to break.

Yet if India is to produce anything like a real fintech winner, PhonePe is more than likely to be it.

Follow Shritama Bose on Linkedin and X.

CONTEXT NEWS

Walmart-backed Indian fintech firm PhonePe on September 24 said it has confidentially filed for a Mumbai initial public offering.

The company plans to raise around 120 billion rupees ($1.35 billion) through a sale of existing shares, Moneycontrol reported on the same day, citing unnamed industry sources. Walmart, Tiger Global and Microsoft could sell a combined 10% stake in the IPO, the report added.

PhonePe narrowed losses during the year ended March 31 to 17.3 billion rupees ($194.7 million) from 19.96 billion rupees ($225 million) in the previous 12-month period, the company said in a regulatory filing on September 22.

(Editing by Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))