Bajaj Housing Finance, a subsidiary of Bajaj Finance, has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial share-sale. The company aims to raise about ₹7,000 crore through the issue.
The initial public offering (IPO) is a combination of fresh issue of equity shares of up to ₹4,000 crore and an offer for sale (OFS) of equity shares worth ₹3,000 crore by parent Bajaj Finance, according to the Draft Red Herring Prospectus (DRHP) filed with SEBI on Saturday.
The funds raised from the fresh issue will be utilised to augment the company’s capital base to meet future capital requirements.
The development comes a day after the board of Bajaj Housing Finance approved the company’s listing plans subject to market conditions.
Its parent company Bajaj Finance disclosed that it will sell shares worth ₹3,000 crore in the housing finance subsidiary.
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Bajaj Housing Finance is a 100% subsidiary of Bajaj Finance.
Bajaj Finserv holds a 51.34% stake in Bajaj Finance.
The mortgage financier, which manages assets as much as ₹91,370 crore as of March 31 this year, is an upper-layer NBFC in terms of the Reserve Bank of India’s (RBI) scale-based regulation guidelines.
Earlier in September 2022, the banking regulator released a list of 15 NBFCs that are in the upper layer as their loan book was above ₹50,000 crore.
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The central bank norms mandated the company to list its shares on the exchanges by September 2025.
Last month, brokerage firm PhillipCapital anticipated that Bajaj Housing Finance will list on the exchanges in September 2025 with an expected listing price of ₹550-570 per share.
PhillipCapital is positive on the company due to its emphasis on salaried home loans, stable expense ratio, and minimal credit costs, resulting in robust return ratios.
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 to the issue.
