Explained: What is a QIP, a floor price and a warrant?
Bajaj Finance has opened a qualified institutional placement of up to Rs 11,700 crore with a floor price of Rs 992.25 per share, about an 8% discount to the recent closing price.
A QIP is a way for a listed company to raise money from institutional buyers.
The floor price is the lowest price at which shares can be sold under SEBI’s formula.
A warrant gives its holder the right to convert into a share later.
Bajaj Finance has a floor price of Rs 992.25 and a separate warrant issue at Rs 1,010.
The final QIP price is set by the company and its managers.
The article calls Rs 1,078.80 Thursday’s closing price although it was published on Thursday morning, so the figure is more likely the Wednesday close, and the report does not say which.
Bajaj Finance said it may offer a discount of not more than 5% on the floor price, subject to applicable rules and shareholder approval, according to Business Today.
The final issue price is to be set by the company together with the book-running lead managers.
The lead managers named in the report are Kotak Mahindra Bank, JPMorgan, IIFL Capital Services, JM Financial, Axis Capital and Morgan Stanley.
Shareholders approved the raise through a special resolution dated November 2, 2026, according to Business Today.
The company said proceeds would be used for repayment of deposits, loans, commercial papers, non-convertible debentures and interest payments, according to Business Today.
Another report says the QIP is part of a broader capital-raising plan approved by the board on October 1, 2026, according to a search summary of Zeebiz coverage.
Business Today reports that the board approved the allotment of 5,74,25,740 warrants to Bajaj Finserv at Rs 1,010 per warrant, each convertible into one equity share of face value Re 1.
Warrants are instruments that give the holder the right to convert into shares later, and the warrant issue is separate from the QIP.
Reports put the warrant component at about Rs 5,800 crore, and a Bloomberg-sourced report put the overall plan at Rs 17,500 crore, according to search summaries.
Indian currency notes (representative image), Wikimedia Commons, CC BY-SA 4.0
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