Bajaj twins among top gainers of Nifty 50; Bajaj Finance share price hits 52-week high; here’s why

Shares of Bajaj Finserv and Bajaj Finance were among the top two gainers of Nifty 50 on Friday's session following the Bajaj Finance board's approval of a ₹10,000 crore fundraising plan on Thursday. Bajaj Finserv share price opened at ₹1,560.80 apiece on BSE, and gained nearly 5%, and Bajaj Finance share price after falling for two-consecutive sessions opened at ₹7,859.95 and touched 52-week high at ₹8,107.15.

Bajaj Finance raised ₹8,800 crore via Qualified Institutions Placement (QIP), and the board also approved raising funds up to ₹1,200 crore via warrants. 

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"Raising of capital through a QIP for an aggregate amount not exceeding Rs. 8,800 crore by the issue of equity shares of face value of ₹2 each in accordance with the Chapter VI of the SEBI Regulations, 2018, the companies Act, 2013, and the rules made thereunder," the company said in an exchange filing.

By issuing up to 15,50,000 warrants with the option to convert them into an equivalent number of equity shares with a face value of ₹2 each as a preferential issue (PI) to the promoter, Bajaj Finserv Limited, for a total not to exceed ₹1,200 crore.

Also Read: Bajaj Finance raises ₹8,800 crore via Qualified Institutions Placement

Additionally, brokerages' positive outlook on the Bajaj twins aided the overall sentiment for the stocks. 

Bajaj Finance continues to have a buy recommendation from Jefferies, with a target price of ₹8,830. The customer base is still growing at a robust 22% rate as significant growth continues, according to the report. Deposit growth was almost 40% YoY, and liquidity is still sufficient. Bajaj Finance is Jefferies' top pick among NBFCs.

Similarly, brokerage, B&K Securities has  a 'buy' rating and a price target of ₹1,867 apiece on Bajaj Finserv, in its latest report. From the stock's most recent closing price of ₹1,542, this target indicates a potential upside of 21%.

The brokerage stated that Bajaj Finserv gives investors the chance to participate in every aspect of India's financialisation. The brokerage emphasised that Bajaj Finserv's recent forays, like Bajaj Finserv Direct and health tech project Bajaj Finserv Health, have shown significant development in terms of revenue and client engagement.

According to the brokerage report, Bajaj Finserv holds a 52.5% stake in Bajaj Finance.

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Technical Views on Bajaj twins

Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, said that Bajaj Finserv share prices are seeing strong volume based breakout in today's session. also in futures we are seeing fresh long addition. 

“We have a positive view on the stock and expect a move towards ₹1,700 in near term. Any dip towards ₹1,590 can be considered as a buy scenario,” said Bhosale.

Additionally, Rajesh has a positive outlook on Bajaj Finance and recommends buying. Bajaj Finance shares have given a long term breakout above 8,000 levels that has been acting as stiff resistance since the year 2021 and in uncharted territory we expect the price to head towards 8,500 in near term. His short term call for the clients are with the set of buying around ₹8,090 with stop loss of ₹7,930 for target price of   ₹8,365.

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