Bajaj Housing Finance submits documents for Rs 7,000 crore IPO | Market Updates

Bajaj Housing Finance, a subsidiary of Bajaj Finance, has made a significant move by filing papers with the Securities and Exchange Board of India (SEBI) for a whopping Rs 7,000 crore public issue. This initial public offering (IPO) will consist of a combination of fresh equity and promoter stake sale, making it a highly anticipated event in the financial market.

The IPO plan includes a fresh issue of equity shares worth up to Rs 4,000 crore, along with an offer for sale (OFS) of equity shares valued at Rs 3,000 crore by its parent company, Bajaj Finance. This strategic move is in line with the Reserve Bank of India’s regulations, which mandate 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 registered with the National Housing Bank since 2015, specializes in providing financial solutions for purchasing and renovating residential and commercial properties. With a strong focus on mortgage products such as home loans, loans against property, lease rental discounting, and developer financing, the company has established itself as a key player in the housing finance sector.

In the financial year 2023-24, Bajaj Housing Finance reported a net profit of Rs 1,731 crore, reflecting a remarkable growth of 38% from the previous year. The company’s IPO announcement comes on the heels of recent listings of housing finance companies Aadhar Housing Finance and India Shelter Finance on the stock exchanges.

The board of Bajaj Finance has approved the sale of shares worth Rs 3,000 crore in the IPO of Bajaj Housing Finance, with leading financial institutions like Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd appointed as the book-running lead managers for the public issue. This move is expected to generate significant interest and excitement in the market as investors eagerly await the opportunity to be part of this major financial event.