Bajaj shares jump amid IPO buzz. Details here

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Shares of Bajaj group saw a jump ranging from 1% to 4% following media reports that Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd, has begun initial discussions with various investment banks regarding a potential initial public offering (IPO).

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Shares of Bajaj Finance were trading at Rs 7,318 for an increase of over 4%. The shares of Bajaj Electrical were trading at Rs 911.40 for an increase of 1%. Similarly, shares of Bajaj Finserv Ltd were trading over 4% at Rs 1,654.

The shares of Bajaj Hindusthan Sugar Ltd were trading at an uptick of almost 2% at Rs 29.20. Similarly, the shares of Bajaj Holdings & Investment Ltd saw a surge of over 1%, trading at Rs 8,200.

Only Bajaj Auto Ltd and Bajaj Consumer Care Ltd were trading in the red, with the former at a decline of 1% at Rs 9,050 while the latter seeing a decrease of 0.07% at Rs 215.35.

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The IPO is expected to be valued at approximately $10 billion.

The move for the IPO aligns with the Reserve Bank of India’s (RBI) mandatory directive for “upper layer” NBFCs to go public within three years of notification. Bajaj Housing Finance is required to be listed by September 2025 according to the current regulatory timeline established by the RBI.

RBI has released a list of non-banking financial corporations (NBFCs) subject to scale-based regulation for the fiscal year 2023-24, with Bajaj Housing Finance among those in the upper layer. Besides 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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Bajaj Housing Finance recorded a 31% year-on-year increase in assets under management, reaching Rs 85,929 crore as of December 31. Disbursements amounted to Rs 10,727 crore, marking a 44% year-on-year rise. In Q3 FY24, the lender’s net interest income grew by 17% year-on-year to Rs 645 crore.