In an exchange filing on Tuesday, Bajaj Finance announced that it will acquire a 26% stake in Pennant Technologies Pvt Ltd for Rs 267.50 crore in a cash deal. The acquisition is a strategic investment to strengthen Bajaj Finance’s technology roadmap and is expected to be completed on or before December 30, 2023. 

The filing further stated that Bajaj Finance had inked a binding term sheet with Pennant to acquire up to a 26% equity stake in the latter on a fully diluted basis through 5,71,268 Compulsorily Convertible Preference Shares (Series A CCPS) of face value of Rs. 100 each and 4,22,738 equity shares from promoters and existing shareholders.

Pennant is a technology product company which provides technology services and software products for the banking and financial services industry. The company had a turnover of Rs 74.28 crore in FY23.  

Meanwhile, Bajaj Finance will announce its second-quarter financial results later today. October 17. Market experts and analysts expect the non-banking finance company to report a sharp growth in net profit with stable asset quality and strong loan growth. Its net interest income (NII) is also seen to be rising.

Shares of Bajaj Finance reached an intraday high of Rs 8,159 during the early opening hours on Tuesday, up more than 1.5% from the last closing price on the National Stock Exchange (NSE). At 12:35 pm, the scrip was trading at Rs 8,065.45, 0.37% higher than the previous closing price.