Bajaj Housing Finance files papers for ₹7,000 crore IPO

Bajaj Housing Finance has filed preliminary papers with capital markets regulator Sebi to raise ₹7,000 crore through an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares of up to ₹4,000 crore and an offer for sale (OFS) of equity shares worth ₹3,000 crore by parent Bajaj Finance, according to the draft red herring prospectus (DRHP).

The share sale is being conducted to comply with the Reserve Bank of India’s (RBI) regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.

Bajaj Housing Finance is a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015. It offers financial solutions for purchasing and renovating residential and commercial properties.

It has been identified and categorised as an “upper layer” NBFC by the RBI in India, and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing.

For the entire financial year 2023-24, the housing lender posted a net profit of ₹1,731 crore, marking a 38% growth from ₹1,258 crore in FY23.

Housing finance companies Aadhar Housing Finance and India Shelter Finance have been recently listed on the stock exchanges.

On June 6, the board of Bajaj Finance approved the sale of shares worth ₹3,000 crore in the initial public offering of Bajaj Housing Finance.

Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd and JM Financial Ltd are the book-running lead managers that will manage the company’s public issue.

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