BENGALURU, Oct 5 (Reuters) – Indian non-bank lender Bajaj Finance (BJFN.NS) stated on Thursday it should increase as much as 100 billion rupees ($1.20 billion) by issuing shares to institutional traders and warrants to its largest shareholder.

The plan comes as demand for loans surges and competitors heats up within the sector with the entry of Jio Financial Services (JIOF.NS), carved out of billionaire Mukesh Ambani’s Reliance Industries (RELI.NS).

Companies like Tata Capital and Aditya Birla Capital (ADTB.NS) are additionally dashing to boost recent funds.

Bajaj Finance will increase as much as 88 billion rupees by a professional institutional placement of shares, and one other 12 billion rupees by issuing warrants convertible into shares to prime shareholder Bajaj Finserv (BJFS.NS).

Bajaj Finserv’s stake within the firm may enhance from 52.45% to 52.57% put up the problem, Bajaj Finance stated, including that the problem worth could be decided at a later stage.

Bajaj Finance had final raised funds by a professional institutional placement in 2019, raking in 85 billion rupees.

The lender stated on Wednesday that new loans booked in the course of the second quarter grew 26%, whereas its property beneath administration elevated about 33% to about 2.90 trillion rupees as of September-end.

($1 = 83.2397 Indian rupees)

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