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Bajaj Finance acquires Pennant Technologies for strengthening tech roadmap

Oct 17, 2023

By: BlinkX Research Team

Bajaj Finance has recently announced the acquisition of Pennant Technologies Private Limited, a technology product company, as part of a strategic investment. The turnover of Pennant Technologies for FY 2022-23 was approximately Rs. 74.28 crore. 

The primary objective of this investment is to enhance Bajaj Finance's technology roadmap. The acquisition involves an all-cash consideration of approximately Rs. 267.50 crore, and it will result in Bajaj Finance acquiring up to a 26% equity stake on a fully diluted basis. This equity stake comprises 5,71,268 Compulsorily Convertible Preference Shares (Series A CCPS) and 4,22,738 equity shares from Pennant's promoters and existing shareholders.

Pennant Technologies, established on November 21, 2005, specializes in providing technology services and software products tailored for the banking and financial services industry. Their turnover for the last three fiscal years was Rs. 74.28 crore (FY 2022-23), Rs. 52.07 crore (FY 2021-22), and Rs. 40.48 crore (FY 2020-21).

The acquisition is expected to be completed by December 30, 2023, subject to the fulfillment of conditions specified in the definitive agreements to be executed. This move underlines Bajaj Finance's commitment to enhancing its technological capabilities and further strengthening its position.