Pricing of rights issue boosts Bajaj Auto Finance

Bajaj Auto Finance jumped 5.86% to Rs 480.25, after it priced its rights issue at Rs 325 per share.

7459 shares were traded on the counter on BSE. The counter had surged to a high of Rs 505, while its low was at Rs 470.The stock witnessed a solid spurt in the past few days, from Rs 390.05 on 30 October, the stock surged to Rs 453.65 by 02 November 2006, on back of strong buying interest. It surged 16.32% in just 3 trading sessions.

Bajaj Auto Finance is issuing 6 rights shares for every 10 held. The proceeds would be used for expansion and retirement of high-cost debt. The board has also approved the issue of 5.25 million debentures and warrants, convertible at Rs 500 per share.

Bajaj Auto Finance, a Bajaj group NBFC, is largely into retail lending. Apart from the financing of two-wheelers and consumer durables, the company also caters to the financing of personal computers and personal loans.

For Q2 September 2006, Bajaj Auto Finance reported 49.80% fall in net profit to Rs 6.16 crore (Rs 12.26 crore). Total income rose 55% to Rs 82.16 crore (Rs 53.02 crore).