Bajaj Finance subsidiary, Bajaj Housing Finance, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise Rs 7,000 crore through an initial public offering (IPO).
The NBFC’s proposed IPO comprises a fresh issue of equity shares of up to Rs 4,000 crore and an offer for sale (OFS) of equity shares worth Rs 3,000 crore by parent Bajaj Finance, according to the draft red herring prospectus (DRHP).
Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
The share sale is being conducted to comply with RBI regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.
Housing finance companies Aadhar Housing Finance and India Shelter Finance have been recently listed on the stock exchanges.
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.
RBI has categorised Bajaj Finance as an “upper layer” NBFC. It offers comprehensive mortgage products, including home loans, loans against property, lease rental discounting and developer financing.
The housing lender posted a net profit of Rs 1,731 crore for FY24, registering a growth of 38 percent from Rs 1,258 crore in FY23.
On June 6, the board of Bajaj Finance approved the sale of shares worth Rs 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, PTI reported.
The Reserve Bank of India (RBI) had brought out a list of non-banking financial corporations (NBFC)s in the upper layer under scale-based regulation for NBFCs for the year 2023-24. Apart from Bajaj Housing Finance, the Upper Layer list also includes Tata Sons, HDB Financial Services, Tata Capital Financial Services, Aditya Birla Finance and Shanghvi Finance.
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