DRAFT LETTER OF OFFERISSUE OF [] EQUITY SHARES OF FACE VALUE ` 5/- EACH (RIGHTS SHARES) FOR CASH AT A PREMIUM OF ` [] PER RIGHTS SHARE AGGREGATING TO AN AMOUNT UPTO ` 1,000.00 CRORES BY BAJAJ FINSERV LIMITED (THE COMPANY OR THE ISSUER) TO THE ELIGIBLE EQUITY SHAREHOLDERS OF OUR COMPANY ON A RIGHTS BASIS IN THE RATIO OF [] RIGHTS SHARES FOR EVERY [] EQUITY SHARES HELD ON THE RECORD DATE, I.E. [] (THE ISSUE). THE ISSUE PRICE OF EACH RIGHTS SHARE IS [] TIMES THE FACE VALUE OF THE RIGHTS SHARE.
GENERAL RISKSInvestments in equity and equity related securities involve a high degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read risk factors carefully before taking an investment decision in relation to this Issue. For taking an investment decision, investors must not rely on the Draft Letter of Offer and must rely on their own examination of the Issuer and the Issue including the risks involved. The securities have not been recommended or approved by the Securities and Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this document. Investors are advised to refer to the section titled Risk Factors on page 11 of the Draft Letter of Offer before making an investment in this Issue.
ISSUERS ABSOLUTE RESPONSIBILITYThe Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that the Draft Letter of Offer contains all information with regard to the Issuer and the Issue, which is material in the context of this Issue, that the information contained in the Draft Letter of Offer is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes the Draft Letter of Offer as a whole or any such information or the expression of any such opinions or intentions misleading in any material respect.
LISTINGThe Equity Shares of our Company are listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). Our Company has received in-principle approvals from the BSE and the NSE for listing the Rights Shares arising from this Issue through letters dated [] and [] respectively. For the purposes of the Issue, the Designated Stock Exchange shall be [].
LEAD MANAGER TO THE ISSUE
JM Financial Institutional Securities Private Limited141, Maker Chambers III,Nariman Point, Mumbai - 400 021Tel: +91 22 6630 3030 / 3953 3030 Fax: +91 22 2204 7185Email: [email protected] Grievance ID: [email protected] Contact Person: Lakshmi Lakshmanan Website: www.jmfl.comSEBI Registration No.: INM000010361
Karvy Computershare Private LimitedPlot Nos. 17-24, Vittal Rao Nagar,Madhapur, Hyderabad-500 081Tel: +91 40 4465 5000Toll Free No.: 1800 345 4001Fax: +91 40 2343 1551Email: [email protected] Investor Grievance ID: [email protected] Contact Person: M. Murali KrishnaWebsite : http://karisma.karvy.com;SEBI Registration No.: INR000000221
REGISTRAR TO THE ISSUE
Bajaj Finserv Limited (the Company) on April 30, 2007 as a public limited company under the Companies Act, 1956, in the state of Maharashtra. Our Company obtained a certificate for commencement of business on May 7, 2007 from the Registrar of Companies, Maharashtra. The registered office of our Company is located at Bajaj Auto Limited Complex, Mumbai-Pune Road, Akurdi, Pune 411 035 and the corporate office is located at Survey No. 208/1-B, 6th Floor, Behind Weikfield IT Park, Off Pune-Ahmednagar Road, Viman Nagar, Pune 411 014. Company Secretary and the Compliance Officer: Sonal Ramanand Tiwari; Tel: +91 20 6610 7458; Fax: +91 20 6610 7380 E-mail: [email protected]; Website: www.bajajfinserv.in. For details of changes in the name and registered office of our Company, please refer to the section titled History and Certain Corporate Matters on page 142 of the Draft Letter of Offer.
THE PROMOTERS OF OUR COMPANY ARE BAJAJ HOLDINGS & INVESTMENTS LIMITED, RAHULKUMAR KAMALNAYAN BAJAJ, MADHURKUMAR RAMKRISHNAJI BAJAJ, SHEKHARKUMAR RAMKRISHNAJI BAJAJ AND NIRAJKUMAR RAMKRISHNAJI BAJAJ
DRAFT LETTER OF OFFERJuly 17, 2012
For the Eligible Equity Shareholders of the Company only
BAJAJ FINSERV LIMITED
LAST DATE FOR REQUEST FOR SPLIT APPLICATION FORMS:
ISSUE PROGRAMISSUE OPENS ON : ISSUE CLOSES ON:
[l] [l] [l]
C M Y K
C M Y K
FOR PRIVATE CIRCULATION TO THE ELIGIBLE EQUITY SHAREHOLDERS OF OUR COMPANY ONLY
TABLE OF CONTENTS
SECTION I - GENERAL............................................................................................................................................1
DEFINITIONS AND ABBREVIATIONS....................................................................................................................1 PRESENTATION OF FINANCIAL INFORMATION AND USE OF MARKET DATA ..........................................8 FORWARD LOOKING STATEMENTS ...................................................................................................................10
SECTION II RISK FACTORS .............................................................................................................................11
SECTION III INTRODUCTION..........................................................................................................................33
SUMMARY OF FINANCIAL AND OPERATIONAL INFORMATION.................................................................33 SUMMARY OF INDUSTRY .....................................................................................................................................41 SUMMARY OF BUSINESS.......................................................................................................................................46 THE ISSUE .................................................................................................................................................................53 GENERAL INFORMATION......................................................................................................................................54 CAPITAL STRUCTURE ............................................................................................................................................60 OBJECTS OF THE ISSUE .........................................................................................................................................77 BASIS FOR THE ISSUE PRICE ................................................................................................................................80 STATEMENT OF GENERAL TAX BENEFITS .......................................................................................................82
SECTION IV ABOUT OUR COMPANY ............................................................................................................89
INDUSTRY OVERVIEW...........................................................................................................................................89 OUR BUSINESS.......................................................................................................................................................113 REGULATIONS AND POLICIES ...........................................................................................................................131 HISTORY AND CERTAIN CORPORATE MATTERS..........................................................................................142 OUR SUBSIDIARIES AND JOINT VENTURE......................................................................................................148 OUR MANAGEMENT.............................................................................................................................................152 OUR PROMOTERS..................................................................................................................................................166 OUR GROUP ENTITIES..........................................................................................................................................172 DIVIDEND POLICY ................................................................................................................................................190
SECTION V FINANCIAL INFORMATION ....................................................................................................191
FINANCIAL STATEMENTS...................................................................................................................................191 MARKET PRICE INFORMATION .........................................................................................................................319 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ..........................................................................................................................................................321 DISCLOSURES ON EXISTING FINANCIAL INDEBTEDNESS .........................................................................353
SECTION VI LEGAL AND OTHER INFORMATION ..................................................................................354
OUTSTANDING LITIGATIONS AND OTHER DEFAULTS................................................................................354 GOVERNMENT AND OTHER APPROVALS .......................................................................................................444 STATUTORY AND OTHER INFORMATION.......................................................................................................457
SECTION VII OFFERING INFORMATION...............................
