Bajaj Housing Finance submits documents for ₹7,000 crore IPO

Bajaj Housing Finance, a leading housing finance company, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise a whopping ₹7,000 crore through an initial public offering (IPO). The proposed IPO includes a fresh issue of equity shares worth up to ₹4,000 crore and an offer for sale (OFS) of equity shares worth ₹3,000 crore by its parent company, Bajaj Finance.

The move comes as a part of the company’s compliance with the Reserve Bank of India’s (RBI) regulations, which mandate upper-layer non-banking finance companies to be listed on stock exchanges by September 2025. The funds raised from the IPO will be used to bolster the company’s capital base to meet future capital requirements.

Bajaj Housing Finance, registered with the National Housing Bank since September 2015, offers a range of financial solutions for purchasing and renovating residential and commercial properties. It has been identified as an “upper layer” NBFC by the RBI and provides comprehensive mortgage products including home loans, loans against property, lease rental discounting, and developer financing.

In the financial year 2023-24, the housing lender reported a net profit of ₹1,731 crore, marking a significant 38% growth from the previous year. The IPO will be managed by book-running lead managers including Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd.

With the recent listings of housing finance companies like Aadhar Housing Finance and India Shelter Finance, the IPO of Bajaj Housing Finance is expected to garner significant interest from investors looking to capitalize on the booming real estate market.