New Delhi: Bajaj Housing Finance is planning to raise Rs 7,000 crore through an initial public offering (IPO). They have submitted the necessary documents to the Securities and Exchange Board of India (Sebi). This IPO will include a fresh issue of shares worth Rs 4,000 crore and an offer for sale (OFS) of shares worth Rs 3,000 crore by Bajaj Finance, their parent company, as per the draft red herring prospectus (DRHP).
The IPO is being launched to meet the Reserve Bank of India’s (RBI) rules, which require large non-banking finance companies to list on stock exchanges by September 2025.
The money from the fresh issue will help Bajaj Housing Finance strengthen its capital base to support future growth.
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Bajaj Housing Finance, which started in September 2015, is a housing finance company registered with the National Housing Bank. It provides loans for buying and renovating homes and commercial properties.
The RBI has classified it as an “upper layer” non-banking finance company. Bajaj Housing Finance offers a range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing. For the financial year 2023-24, the company reported a net profit of Rs 1,731 crore, a 38% increase from Rs 1,258 crore in the previous year. Recently, other housing finance companies like Aadhar Housing Finance and India Shelter Finance have also been listed on the stock exchanges.
On June 6, Bajaj Finance’s board approved the sale of shares worth Rs 3,000 crore in the IPO of Bajaj Housing Finance.
The IPO will be managed by Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd.
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