Bajaj Housing Finance’s ₹6,560 Crore IPO Set for September 9: Backed by Bajaj Finance & Finserv, Includes Equity Sale & Public Offer

Bajaj Housing Finance, backed by Bajaj Finance and Bajaj Finserv, plans to launch its Initial Public Offering (IPO) on September 9. The company aims to raise around ₹6,560 crore through this public offer. This amount includes ₹3,560 crore from selling new shares and ₹3,000 crore from an offer for sale (OFS).

Key Details of the IPO

The price range for the shares will be announced soon. The IPO is structured with 50% of the offer reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors. Additionally, a portion of the shares will be reserved for the company’s employees and shareholders of the promoter companies, including individuals and Hindu Undivided Families (HUFs) who hold shares in the promoters.

Use of Funds

The funds raised from the IPO will be used to strengthen the company’s capital base, supporting future business needs and further lending activities.

Company Background

Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) that has been registered with the National Housing Bank since September 2015. The company provides tailored financial solutions for buying and renovating both residential and commercial properties.

Recently, the Reserve Bank of India (RBI) categorized Bajaj Housing Finance as an upper-layer non-banking financial company (NBFC). The company offers a wide range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing.

The company’s primary focus is on retail housing loans for individuals, but it also offers various commercial and developer loans, catering to a broad range of customers from homebuyers to large developers.

Financial Performance

For the fiscal year 2023-24, Bajaj Housing Finance reported a net profit of ₹1,731 crore, marking a 38% increase compared to the ₹1,258 crore profit in FY23.

Lead Managers

The IPO will be managed by several leading financial institutions, including Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities.