Bajaj Housing Finance to launch Rs 6,560-crore IPO on September 9

Bajaj Housing Finance is gearing up to launch its highly anticipated initial public offering (IPO) worth Rs 6,560 crore on September 9, 2024.

This public subscription event will close on September 11, with a special bidding window for anchor investors set to open on September 6, as outlined in the red herring prospectus (RHP).

The IPO will consist of a fresh equity issue totaling Rs 3,560 crore and an offer for sale (OFS) valued at Rs 3,000 crore by its parent company, Bajaj Finance.

This share sale is part of the company’s efforts to comply with 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.

The funds raised from the fresh issue will strengthen the company’s capital base, enabling it to meet future capital requirements.

Bajaj Housing Finance, a non-deposit-taking housing finance company, has been registered with the National Housing Bank since September 2015. The company provides various financial solutions, including loans for purchasing and renovating residential and commercial properties.

Identified as an “upper layer” NBFC by the RBI, Bajaj Housing Finance offers a comprehensive range of mortgage products such as home loans, loans against property, lease rental discounting, and developer financing.

The company recorded a net profit of Rs 1,731 crore for the fiscal year 2023-24, reflecting a 38% increase from Rs 1,258 crore in FY23.

Recently, other housing finance companies like Aadhar Housing Finance and India Shelter Finance have also gone public. Bajaj Housing Finance had initially filed preliminary papers with Sebi in June for a Rs 7,000-crore IPO, which included fresh shares worth Rs 4,000 crore and an OFS component of Rs 3,000 crore by its parent. The company received approval from the market regulator for its debut public offering earlier this month.

The IPO will be managed by a consortium 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.