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Sunday, Dec 18, 2005


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Corporate - Preferential Allotments

Bajaj Auto Finance to raise Rs 321 cr thru pref allotment

Our Bureau

Mumbai , Dec. 17

BAJAJ Auto Finance Ltd (BAFL) plans to raise Rs 321 crore from a preferential allotment of equity shares and warrants to its promoter and select financial investors.

The move is ahead of its proposed rights issue of Rs 900-950 crore, the ratio and pricing of which would be decided around end-January or early-February.

According to a statement, the company will issue 10,03,260 fully paid equity shares of face value Rs 10 each for cash to Bajaj Auto Ltd (BAL) at a price of Rs 410 per share.

Also for BAL's taking are 30,06,540 warrants, each convertible into one fully paid equity share of face value of Rs 10 each on payment of aggregate price of Rs 410 per share (including premium of Rs 400 per share). The warrants are convertible after 18 months.

Further, 10,35,000 fully paid equity shares of face value Rs 10 each for cash would be allotted to Copa Cabana and El Dorado Holdings, at a price of Rs 450 per share. Another set of 7,15,000 fully paid equity shares of similar face value would be allotted at Rs 450 per share to Tiger Global Management LLC (and affiliated funds) and Blue Ridge Ltd Partnership and or Blue Ridge Offshore Master Ltd Partnership.

Bajaj Auto and its subsidiaries now hold 46.76 per cent equity in Bajaj Auto Finance. It is understood that after the first round of preferential equity share allotment, that would fall a bit to 41.5 per cent.

The paid-up capital of BAFL, at present, is Rs 16.50 crore. It would move up to Rs 20.99 crore after the preferential allotment of equity shares.

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