Bajaj Housing Finance IPO: Public Issue Opens For Bidding On September 9

Bajaj Housing Finance IPO will commence On September 9, subscriptions for the eagerly anticipated initial public offering of Bajaj Housing Finance will be accepted. The IPO will end on September 11, and the price band will be revealed on Tuesday, September 3.

The red herring prospectus (RHP) states that parent company Bajaj Finance will combine an offer for sale (OFS) component of equity shares worth up to Rs 3,000 crore with a fresh issue of shares valued at Rs 3,560 crore to create the proposed Rs 6,560-crore IPO.

On September 6, the anchor investor bidding will begin.

Utilisation of IPO proceedings

In order to comply with the Reserve Bank of India's (RBI) regulations, which demand that upper-layer non-banking financial companies (NBFCs) be listed on the bourses by September 2025, the share sale is being held.

The company's capital base will be expanded, and future capital needs will be satisfied with the proceeds of the new issue.

OFS, fresh issue and valuation

Bajaj Housing Finance submitted preliminary documents to SEBI, the markets regulator, in June for an IPO valued at Rs 7,000 crore, which included Rs 3,000 crore in parent company OFS shares in addition to 4,000 crore new shares. Earlier this month, the market regulator approved the company's first public offering.

The housing lender reported Rs 1,731 crore in profit after tax for 2023–24, a 38 per cent increase from Rs 1,258 crore in FY23.

Peers listed on the exchange

Two housing finance companies that have recently been listed on stock exchanges are Aadhar Housing Finance and India Shelter Finance.

Book-running lead managers

The book-running lead managers for the company's public offering are BofA Securities India Ltd, Kotak Mahindra Capital Company Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, and JM Financial Ltd.

RBI classification

Since September 2015, Bajaj Housing Finance, a non-deposit-taking housing finance company, has been registered with the National Housing Bank. It offers financial assistance for buying and remodelling both commercial and residential properties.

It has been recognised and classified by the RBI as a "upper layer" NBFC. Its extensive portfolio of mortgage products includes home loans, developer financing, lease rental discounting, and loans secured by real estate.