Bajaj Finance To Acquire Up To 26% Stake In Pennant For $32 Mln

Bajaj Finance Ltd. agreed to acquire an up to 26% stake in technology product company Pennant Technologies Private Ltd. for 267.50 crore rupees ($32 million) in cash.

The transaction entails acquisition of 571,268 compulsorily convertible preference shares with a face value of 100 rupees each, as well as 422,738 equity shares from promoters and existing shareholders of Pennant, the Indian non-banking financial company said in a stock exchange announcement.

Bajaj Finance, which signed a binding term sheet with Pennant on 16 October, said the aim of the strategic investment is to strengthen the company’s technology roadmap.

Pennant is engaged in providing business-driven technology services and software products for the banking and financial services industry. The company, incorporated in November 2005, reported a turnover of 74.28 crore rupees in FY23, up from 52.07 crore rupees a year earlier.

The deal is likely to close by 30 December, subject to satisfaction of the conditions to be set out in the definitive agreements, according to the statement.

Note: $1 = 83.2418 Indian rupees

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