Bajaj Housing Finance Announces ₹6,560 Crore IPO Launch on September 9, 2024

Bajaj Housing Finance Limited is set to launch its initial public offering (IPO) for subscription on September 9, 2024. The non-banking financial company aims to raise ₹6,560 crore through this public issue, marking a significant milestone in its corporate strategy.

According to the Reserve Bank of India, Bajaj Housing Finance falls under the classification of “Upper-layer” non-banking financial companies (NBFC). As part of compliance with RBI norms, all NBFCs in this category are required to list their shares on stock exchanges by September 2025.

The IPO consists of a fresh issue of equity shares amounting to ₹3,560 crore at a face value of ₹10 per share, alongside an Offer for Sale (OFS) of ₹3,000 crore by its parent company, Bajaj Finance. This structure brings the total value of the issue to ₹6,560 crore.

The subscription window will remain open for three days, concluding on September 11, 2024. The price band for the IPO will be announced on September 3, 2024, and the anchor investors will have the opportunity to subscribe on September 6, 2024.

Allocation details reveal that Bajaj Housing Finance intends to allocate no more than 50 percent of the net offer to Qualified Institutional Buyers (QIB) on a proportional basis. Additionally, the company may reserve up to 60 percent of the QIB portion for specific institutional investors. Furthermore, the non-institutional investors (NII) are set to receive a minimum of 15 percent of the net offer, while retail investors will be allocated at least 35 percent.

Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, and several others will serve as book-running managers for the public issue, while Kfin Technologies Limited will act as the registrar.

As part of the IPO process, Bajaj Housing Finance’s promoter, Bajaj Finance, will divest equity shares worth ₹3,000 crore at a face value of ₹10 each.

The funds raised from this public offering are intended to enhance the company’s capital base for future lending activities as well as to cover expenses associated with the offer. Listing on the stock market is expected to provide brand recognition and ensure a presence in the secondary market.

As of June 2024, the total asset under management (AUM) for Bajaj Housing Finance stood at ₹97,071.33 crore, a significant increase from ₹74,124.26 crore recorded the previous year. This growth indicates the company’s robust operational performance and strategic market positioning.

Bajaj Housing Finance, a wholly-owned subsidiary of Bajaj Finance, was founded in 2008. The company specializes in providing varied financial solutions for purchasing and renovating residential and commercial properties, including home loans, loans against property, and more.