Bajaj Housing Finance is gearing up to launch its highly anticipated Initial Public Offering (IPO) worth Rs 6,560 crore, set to open for public subscription on September 9. The IPO will remain open until September 11, with a special bidding window for anchor investors on September 6, as per the details outlined in the company’s red herring prospectus (RHP).
The IPO includes a fresh issue of equity shares amounting to Rs 3,560 crore and an Offer for Sale (OFS) of equity shares valued at Rs 3,000 crore, which will be offloaded by the parent company, Bajaj Finance. The proceeds from the fresh issue are aimed at bolstering Bajaj Housing Finance’s capital base to meet future capital requirements.
This IPO is being launched in adherence to the Reserve Bank of India’s (RBI) mandate, which requires upper-layer non-banking financial companies (NBFCs) to be listed on stock exchanges by September 2025.
Bajaj Housing Finance, a non-deposit taking housing finance company registered with the National Housing Bank since September 2015, provides a broad range of financial solutions for purchasing and renovating residential and commercial properties. It has been identified and categorized as an “upper layer” NBFC by the RBI, owing to its significant market presence and operational scale. The company’s mortgage product portfolio includes home loans, loans against property, lease rental discounting, and developer financing.
For the fiscal year 2023-24, Bajaj Housing Finance reported a net profit of Rs 1,731 crore, reflecting a robust growth of 38% from Rs 1,258 crore in FY23. This strong financial performance underpins the company’s stable growth trajectory in the competitive housing finance market.
The IPO is expected to follow the recent trend of housing finance companies going public, with Aadhar Housing Finance and India Shelter Finance having successfully listed on stock exchanges in recent months.
In June, Bajaj Housing Finance submitted preliminary papers with the Securities and Exchange Board of India (SEBI) for a Rs 7,000 crore IPO, which originally comprised fresh shares worth Rs 4,000 crore and an OFS component of Rs 3,000 crore. The market regulator granted approval for the company’s maiden public issue earlier this month.
The IPO is being managed by an esteemed group of book-running lead managers, including Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd.