Bajaj Housing Finance Limited, a leading Non Banking Financial Company (NBFC) specializing in housing finance, is set to launch its much anticipated Initial Public Offering (IPO) on September 9, 2024.
The IPO, valued at Rs 6,560 crore, will be open for public subscription until September 11, 2024.
Bidding for anchor investors is scheduled to open a few days earlier, on September 6, 2024, according to the Red Herring Prospectus (RHP) filed by the company.
The IPO consists of a fresh issue of equity shares worth Rs 3,560 crore and an Offer for Sale (OFS) of shares amounting to Rs 3,000 crore by the company’s parent entity, Bajaj Finance.
The move to go public is driven by the Reserve Bank of India’s (RBI) regulations, which mandate that upper layer Non Banking Financial Companies (NBFCs) must be listed on stock exchanges by September 2025.
Proceeds from the fresh issue will be utilized to bolster Bajaj Housing Finance’s capital base, ensuring the company meets its future capital requirements.
The company, which has been registered with the National Housing Bank since September 2015, provides a comprehensive range of mortgage products including 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 significant 38% growth compared to Rs 1,258 crore in FY23.
This IPO follows in the footsteps of other recent listings in the housing finance sector, such as Aadhar Housing Finance and India Shelter Finance.
Bajaj Housing Finance had initially filed its draft papers with the Securities and Exchange Board of India (SEBI) in June 2024 for a larger IPO worth Rs 7,000 crore, which included a fresh share issue of Rs 4,000 crore. SEBI granted approval for the IPO earlier this month.
The public issue will be managed by an array of financial institutions, with Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Limited, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, IFL Securities Limited, and JM Financial Ltd serving as the book running lead managers.
