Bajaj Finance to acquire up to 40% stake in Snapwork Technology

Bajaj Finance entered into an agreement to acquire up to 40% stake in Snapwork Technology. 

Shares of Bajaj Finance limited opened at Rs 6746.35 and at 11 am, the share was trading at Rs 6797, 0.75% higher than its previous close.

On November 25, Bajaj Finance Ltd, a subsidiary of Bajaj Finserv entered into an agreement with Snapwork Technologies Pvt Ltd to purchase up to 40% stakes for up to Rs 93 crore in the company. Bajaj Finance signed a Securities Subscription Agreement, Shareholders’ Agreement and Share Purchase Agreement for acquiring up to 40% stakes on a fully dilutive basis.  

The acquisition of 40% shares will be under 45,098 Compulsorily Convertible Series A Preference Shares (Series A CCPS) of the face value of Rs 10 each (Primary) and 20,000 equity shares from promoters of Snapwork of the face value of Rs. 1 each (Secondary). The acquisition will be all cash considered for both primary and secondary purchases and will be completed prior to December 31 2022 unless extended by the company.  

In its exchange filing, Bajaj Finance said that Snapwork is engaged in the business of developing, consulting, providing, exporting, importing, marketing, dealing in and implementing of software technology and allied products for its clients and conducting research and development for the same.  

Incorporated in 2008, Snapwork Technologies had a last three years revenue of Rs 19.46 crore, Rs  26.45 crore and Rs 31.71 crore for FY20, FY21 and FY22 respectively. The acquisition is proposed with the intention to strengthen the Company’s technology roadmap. 

Bajaj Finance is mainly engaged in the business of lending. The company has a diversified lending portfolio across retail, SME and commercial customers with a significant presence in urban and rural India. It also accepts public and corporate deposits and offers a variety of financial services products to its customers. Bajaj Finance has recently allotted 51,000 Secured redeemable non-convertibles debentures with a shelf placement size of Rs 25000 crore in the mode of private placement on November 17, 2022.