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Earlier today, Bajaj Finance announced its intention to purchase a 26% stake in Pennant Technologies Private Limited at a total cost of Rs 267.50 crore. In a regulatory filing, the company stated, “We want to inform you that on October 16, 2023, the Company entered into a binding term sheet with Pennant Technologies Private Limited for the acquisition of up to 26% equity stake in Pennant.”
The completion of this acquisition is expected to occur by December 30, 2023. Bajaj Finance will acquire 4,22,738 equity shares from Pennant’s promoters and existing shareholders, as a part of the agreement. Additionally, they will obtain 5,71,268 Compulsorily Convertible Preference Shares (Series A CCPS) with a face value of Rs 100 each.
Following the disclosure of Bajaj Finance’s Q2FY24 results on October 17, the company’s stock will be under scrutiny during the upcoming trading session.
Bajaj Finance Ltd. reported second-quarter earnings that align with analysts’ expectations, primarily driven by increased total income. The company’s standalone net profit for the quarter ending in September increased by 25.6% compared to the previous year, reaching Rs 3,105 crore, as stated in an official exchange filing.
Analysts surveyed by Bloomberg had predicted a standalone net profit of approximately Rs 3,251.16 crore. On a consolidated basis, the net interest income (NII) of the non-banking financing company (NBFC) climbed by 26% to Rs 8,398 crore in Q1 FY24 from Rs 6,640 crore the previous year.
In a sequential comparison, the net profit increased by 4.96%. The total income for the period ending on September 30 amounted to Rs 11,410 crore, marking a 33% increase. On a standalone basis, the net interest income experienced a 26% year-on-year rise, reaching Rs 8,059 crore. Industry experts had anticipated that the non-banking financial company (NBFC) would disclose consistent asset quality and robust loan expansion. Furthermore, the firm’s net interest income (NII) saw a notable 26.4% growth, reaching ₹8,841 crore, as opposed to ₹6,997 crore in the same period of the previous year.
According to an official regulatory filing, the non-banking financial company reported a 26.3% year-on-year increase in its consolidated net interest income (NII), which represents the variance between interest earned and interest paid, reaching Rs 8,845 crore.
As of September 30, 2023, the total employee count, which includes Bajaj Finance, Bajaj Housing Finance, and Bajaj Financial Securities, amounted to 51,100 individuals. During the Q2FY24 period, the company recruited an additional 4,533 employees. In the first half of FY24, the annualized attrition rate was 13.4%, in contrast to 18.6% in the first half of FY23.