Bajaj Housing Finance finally files for ₹7,000 crore IPO
Bajaj Housing Finance, a subsidiary of Bajaj Finance, has submitted draft papers to the Securities and Exchange Board of India (SEBI). It is seeking approval for an initial public offering (IPO) to raise up to ₹7,000 crore. The e-filing of the draft red herring prospectus was confirmed by Moneycontrol. This move comes after the firm's board approved its listing plans a day earlier.
IPO details and regulatory compliance
The listing plans of Bajaj Housing Finance include a fresh issue of equity shares worth up to ₹4,000 crore, and an offer for sale (OFS) of equity shares subject to market conditions. The company later revealed that the OFS component would amount to ₹3,000 crore. This IPO is part of the company's compliance with the Reserve Bank of India's (RBI) regulatory norms for "upper layer" Non-Banking Financial Companies (NBFCs), to list within three years of being notified.
Bajaj Group returns to public market
The IPO marks the Bajaj Group's return to the public market after a significant hiatus. The syndicate of advisors for this substantial deal includes Kotak Mahindra Capital, Axis Capital, BofA Securities, JM Financial, SBI Capital, Goldman Sachs, and IIFL Capital. As per RBI's current regulatory timeline, Bajaj Housing Finance is required to list by September 2025.
Bajaj Housing Finance's expected market debut
PhillipCapital last month predicted that Bajaj Housing Finance will make its market debut in September 2025, with an expected listing price of ₹550-570 per share. The company, serving over 76.5 million customers across India, provides finance for purchasing and renovating homes or commercial spaces. As of December 31 last year, it managed assets worth ₹85,929 crore, marking a 31% increase from the previous year.
Bajaj Finance shares rally following IPO announcement
Following the board's approval of IPO plans for its subsidiary, Bajaj Finance shares rallied over 5% on Friday. In the last week, shares of Bajaj Finance have provided 8.69% returns to investors and 13.95% returns in the past three months. The company reported a 21.1% year-on-year growth in its net profit at ₹3,824.53 crore, for the fourth quarter ended March 31 of fiscal year 2024.
