Bajaj Housing Finance has filed its draft red herring prospectus (DRHP) with capital markets regulator Sebi to launch at Rs 7,000 crore IPO, suggested some media reports. The issue will include a fresh share sale of Rs 4,000 crore, while its parent Bajaj Finance will offload shares worth Rs 3,000 crore via offer-for-sale (OFS) in the primary stake sale.
Bajaj Housing intends to utilise the net proceeds from the fresh issue to augment its capital base to meet future business requirements. A portion of the proceeds from the fresh issue will be used towards meeting offer expenses and general corporate purposes. Funds from OFS shall go the selling shareholders of the company.
Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book-running lead managers. KFin Technologies was the registrar to the issue. Shares of Bajaj Housing will be listed on the BSE and NSE.
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. The price band for the issue and other key dates related to the IPO shall be announced in the due course by the company.
Bajaj Housing Finance is fully owned by Bajaj Finance, and Bajaj Finserv holds a 51.34 per cent shareholding in Bajaj Finance. The lender 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.
The housing lender posted a net profit of Rs 1,731 crore for the financial year 2023-24, reporting a growth of 38 per cent from Rs 1,258 crore in the previous fiscal year. The company's percentage of home loans to total assets under management (AUM) as of March 31, 2024, stood at 57.8 per cent, down from 61.7 per cent a year ago.