Bajaj Housing Finance IPO: DRHP filed with SEBI; ₹7,000 crore to be raised via public issue

Bajaj Housing Finance on Saturday, June 8, filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹7,000 crore via an initial public offering (IPO).

The IPO includes a fresh issue of equity shares of up to ₹4,000 crore, and an offer for sale (OFS) of up to ₹3,000 crore, the DRHP stated.

As part of the OFS, the parent entity Bajaj Finance would be selling shares at a face value of ₹10 each.

Also Read: Bajaj Housing Finance gets board nod for IPO with fresh issue and OFS

The net proceeds from the IPO will be used for augmenting the company’s capital base to meet future business requirements of the company towards onward lending, the draft papers said.

The DRHP also noted that Kotak Mahindra Capital Company, BofA Securities India, Axis Capital Limited, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the book running lead managers of the issue.

Bajaj Housing Finance IPO allotment categories

At least 50% of the net offer will be available for allocation on a proportionate basis to qualified institutional buyers (QIBs), the company said.

Further, not less than 15% of the IPO will be available for allocation to non-institutional investors (NIIs); and at least 35% for retail investors, as per the DRHP.

Financials of Bajaj Housing Finance

For FY24, the housing lender reported a net profit of ₹1,731 crore, up 38% year-on-year (YoY). Capital adequacy ratio was at 21.28% as on March 31, 2024 including Tier II capital while net NPA stood at 0.10%.

The proportion of home loans to total assets under management had come down to 57.8% at the end of FY24 from the previous year’s level of 61.7%.