Bajaj Housing Finance Submits Documents for Rs 7,000-Crore IPO

Bajaj Housing Finance, a subsidiary of Bajaj Finance, is gearing up for a massive initial public offering (IPO) to raise Rs 7,000 crore. The IPO will consist of a fresh issue of equity shares worth Rs 4,000 crore and an offer for sale (OFS) of equity shares amounting to Rs 3,000 crore by its parent company.

The move comes as a response to the Reserve Bank of India’s (RBI) mandate for upper-layer non-banking finance companies to be listed on stock exchanges by September 2025. Bajaj Housing Finance, a non-deposit-taking housing finance company, has been registered with the National Housing Bank since 2015, offering financial solutions for residential and commercial properties.

The funds raised from the IPO will be utilized to bolster the company’s capital base to meet future capital requirements. With a strong focus on mortgage products like home loans, loans against property, lease rental discounting, and developer financing, Bajaj Housing Finance has seen significant growth, posting a net profit of Rs 1,731 crore in the financial year 2023-24, marking a 38% increase from the previous year.

The board of Bajaj Finance has already approved the sale of shares worth Rs 3,000 crore in the IPO of Bajaj Housing Finance. The IPO will be managed by leading 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.

The upcoming IPO of Bajaj Housing Finance is expected to make waves in the market, following the recent listings of housing finance companies Aadhar Housing Finance and India Shelter Finance on the stock exchanges.