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Bajaj Housing Finance IPO: Bajaj Housing Finance, a non-deposit taking housing financier and the wholly owned housing finance subsidiary of Bajaj Finance, is expected to make its debut on the D-Street in early September, as per information from market sources reported by livemint. Investors are eagerly anticipating details about the price band and bidding dates for what is considered one of the most highly anticipated initial public offerings.
In order to comply with Reserve Bank of India (RBI) regulations requiring the listing of upper-layer non-banking finance companies (NBFC-UL) on the stock exchanges by September 2025, the non-deposit taking housing financier filed the draft prospectus for the ₹7,000 crore initial public offering (IPO) with the regulator in June 2024.
Issue Details
The issuance of new shares in the public offering will amount to ₹4,000 crore. In accordance with the draft red herring prospectus (DRHP), Bajaj Finance Ltd, the parent company, plans to sell additional shares worth ₹3,000 crore through an offer for sale. The company aims to use the proceeds from the new shares to strengthen its capital base for future lending activities. Moreover, listing its shares on stock exchanges will provide the company with advantages such as increased brand visibility and the establishment of a public market for its shares in India. Additionally, some of the funds from the new shares will be allocated to cover offer-related expenses.
The public offering comprises a set-aside of equity shares for eligible employees to subscribe to, along with a set-aside of shares with a face value of ₹10 each for eligible promoters, including individuals and HUFs who are part of the promoters’ public equity ownership.
The company’s listed peers, according to the DRHP, are PNB Housing Finance (P/E of 12.4), Can Fin Homes (P/E of 12.9), Aadhar Housing Finance (P/E of 18.7), Aavas Financiers (P/E of 3.3), Aptus Value Housing Finance (P/E of 24.6), and Home First Finance (P/E of 24.3). LIC Housing Finance has a P/E of 7.3.
The offering’s Book Running Lead Managers include Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, and IIFL Securities Ltd.
In the fiscal year 2023–24, the housing lender reported a net profit of ₹1,731 crore, which represents a 38 per cent increase from ₹1,258 crore in the previous year. Home loans as a proportion of total assets under management (AUM) for the corporation decreased from 61.7% to 57.8% as of March 31, 2024.
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