Bajaj Finance has allotted 1,02,500 Secured Redeemable Non-Convertible Debentures (NCDs) aggregating to Rs 1,025 crore on a private placement basis. The allotment was decided by the Debenture Allotment Committee during its meeting held on May 20, 2026.

The issued NCDs have a face value of Rs 1 lakh each. These instruments carry a coupon rate of 8.08% per annum, with the first coupon payable on May 20, 2027. Subsequent coupon payments will be made annually and on maturity.

The debentures have a tenor of 10 years, maturing on May 20, 2036. However, the instruments include a put option that allows investors to exit at the end of three years, specifically on May 21, 2029. The tenure of the instrument is specified as 3,653 days from the date of allotment.

Key Details of the Allotment

The repayment of the debentures, along with interest and the trustees' remuneration, is secured by a first pari-passu charge on book debts and loan receivables. The security cover will not be less than 1.00 times the aggregate outstanding value of the debentures issued. The debentures are redeemable on maturity.

Morgan Stanley has reaffirmed its Overweight rating on bajaj finance , setting a target price of ₹1,120. The brokerage's stance reflects confidence in the non-banking financial company's near-term fundamentals, underpinned by a favorable operating backdrop and resilient business metrics.

Key Highlights of Morgan Stanley's Assessment

The following table summarizes the key parameters cited by Morgan Stanley in maintaining its Overweight rating:

Operating Environment and Growth Outlook

Morgan Stanley points to a buoyant operating environment as a foundational reason for its positive stance on Bajaj Finance. Loan growth is expected to remain stable, and the asset quality outlook continues to be viewed favorably. These factors collectively support the brokerage's conviction in the company's near-term performance trajectory.

NIM Moderation and Funding Cost Dynamics

Despite acknowledging pressure on funding costs stemming from rising bond yields, Morgan Stanley characterizes the resulting net interest margin (NIM) moderation as manageable. This suggests that while margin headwinds are present, they are not seen as materially disruptive to the company's overall financial profile.

Investor Focus on AI Initiatives

The brokerage also notes that ongoing investor attention on Bajaj Finance's artificial intelligence initiatives remains a relevant theme. This focus reflects broader market interest in how the company is leveraging technology as part of its operational strategy.

Morgan Stanley's maintained Overweight rating and ₹1,120 target price on Bajaj Finance underscore a broadly constructive view on the company, balancing stable growth and asset quality metrics against the backdrop of manageable margin pressures.