Bajaj Housing Finance Set to Launch ₹6,560 Crore IPO on September 9—Here’s What You Need to Know

Bajaj Housing Finance Limited is gearing up to open its initial public offering (IPO) on September 9, 2024, aiming to raise ₹6,560 crore. This financial company, which is part of the Bajaj Group, is moving towards a public listing as required by the Reserve Bank of India (RBI) for NBFCs in its “Upper Layer” category.

Here are the key things you need to know about this upcoming IPO:

1. IPO Value: Bajaj Housing Finance plans to raise ₹6,560 crore through the IPO. The shares will have a face value of ₹10 each. The IPO will include both new shares and an Offer for Sale (OFS).
   
2. IPO Structure: Out of the total ₹6,560 crore, ₹3,560 crore will come from new shares, and ₹3,000 crore from existing shares offered for sale by the promoter.
   
3. Important Dates: The IPO opens on September 9 and will close on September 11. The price range for the shares will be announced on September 3, and there will be a special anchor investor round starting September 6.
   
4. Share Allocation: Up to 50% of the IPO will be allocated to Qualified Institutional Buyers (QIBs), with up to 60% of this portion possibly going to anchor investors. The rest will be split between non-institutional investors (15%) and retail investors (35%).
   
5. Key Players: The IPO is managed by several top financial firms, including Kotak Mahindra, Bofa Securities, Axis Capital, Goldman Sachs, SBI Capital, JM Financial, and IIFL Securities. Kfin Technologies will handle the registration process.
   
6. Promoter’s Stake Sale: Bajaj Finance Limited, the parent company, will sell shares worth ₹3,000 crore in this IPO.
   
7. IPO Purpose: The funds raised will be used to strengthen Bajaj Housing Finance’s capital base for future lending and to cover expenses related to the IPO. Being listed will also boost the company’s brand visibility.
   
8. Investment Plans: The money from the IPO will be used throughout the financial year 2024-25, depending on business needs, market conditions, and other factors.
   
9. Company’s Assets: As of June 2024, Bajaj Housing Finance managed assets worth ₹97,071 crore, up from ₹74,124 crore the previous year.
   
10. About the Company: Founded in 2008, Bajaj Housing Finance offers various financial services, including home loans, loans against property, and developer financing. It’s a key player in the housing finance sector in India.