Bajaj Housing Finance Files IPO Draft with SEBI
Bajaj Housing Finance has submitted the draft prospectus for its initial public offering (IPO) to the Securities and Exchange Board of India (SEBI). The company aims to raise Rs 6,560 crore through the IPO, which will open for subscription on September 9, 2024, as per the red herring prospectus (RHP) filed with SEBI.
The IPO comprises a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore by the parent company, Bajaj Finance. Anchor investors will have the opportunity to bid for the issue on September 6, while the last date for retail investors to apply is September 11.
The IPO is part of the company’s compliance with Reserve Bank of India (RBI) regulations, which mandate upper-layer non-banking financial companies (NBFCs) to list on stock exchanges by September 2025. The company intends to use the proceeds from the IPO to expand its capital base and meet its future funding requirements.
Bajaj Housing Finance is a non-deposit taking housing finance company registered with the National Housing Bank since 2015. The company offers a range of financial solutions for property acquisition and renovation, including residential and commercial properties.
The central bank classifies the company as an upper-layer NBFC, with its mortgage products including home loans, lease rental discounting, developer financing, and loans against property.
In the fiscal year 2023-24, the company recorded a net profit of Rs 1,731 crore, a significant 38% growth compared to the previous year’s profit of Rs 1,258 crore.
The book-running lead managers for the IPO are Kotak Mahindra Capital Company Ltd, JM Financial Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, and Goldman Sachs (India) Securities Private Ltd.
