Bajaj Housing Finance Gets SEBI Nod for ₹7,000 Cr IPO: Big Win for Home Loan Giant and NBFC Market

Mumbai: Bajaj Housing Finance, a subsidiary of Bajaj Finance, has received approval from the Securities and Exchange Board of India (Sebi) for its upcoming initial public offering (IPO). The housing finance company, which does not accept deposits, filed a draft prospectus for the ₹7,000 crore IPO with Sebi in June 2024. This move aligns with the Reserve Bank of India (RBI) regulations that require upper-layer non-banking finance companies (NBFC-UL) to be listed on the stock exchanges by September 2025.

The IPO will consist of a fresh issue of shares worth up to ₹4,000 crore and an offer for sale of up to ₹3,000 crore by Bajaj Finance. The funds raised from the fresh issue will help Bajaj Housing Finance expand its capital base and support future business growth through lending.

Kotak Mahindra Capital, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the lead managers for the IPO.

Bajaj Housing Finance provides a variety of financial solutions for individuals and businesses, including home loans, loans against property (LAP), lease rental discounting, and developer financing.

Q1 Financial Performance

In the first quarter of FY25, Bajaj Housing Finance reported a net profit of ₹483 crore, a 5% increase from the previous year. As of the end of June, the company’s assets under management totaled ₹97,071 crore. Home loans made up 57% of the portfolio, loans against property 10%, lease rental discounting 20%, and dealer finance 11%.

The company disbursed ₹12,004 crore during the quarter, operating across 174 locations. The gross non-performing asset (NPA) ratio stood at 0.28%, and the net NPA ratio was at 0.11% as of June 30, slightly higher than the 0.23% and 0.08% figures from the previous year.