Bajaj Housing Finance IPO to open on Sep 9: All you need to know about ₹6,560 crore public issue

Bajaj Housing Finance IPO: The much-awaited initial public offering of Bajaj Housing Finance will open for subscription on September 9. The price band will be announced on Tuesday, September 3, and the IPO will conclude on September 11.

The bidding for anchor investors will take place on September 6.

According to the red herring prospectus (RHP), the proposed ₹6,560-crore IPO is a mix of a fresh issue of shares worth ₹3,560 crore and an offer for sale (OFS) component of equity shares of up to ₹3,000 crore by parent Bajaj Finance.

The share sale is being held to abide by the Reserve Bank of India's (RBI's) regulations, which require upper-layer non-banking financial companies (NBFCs) to be listed on the bourses by September 2025.

The proceeds from the fresh issue will be utilised to increase the company's capital base and meet future capital requirements.

About Bajaj Housing Finance

The RBI has identified and categorised it as an "upper layer" NBFC. Its comprehensive mortgage products include loans against property, home loans, developer financing, and lease rental discounting.

For 2023-24, the housing lender posted a profit after tax of ₹1,731 crore, reflecting a 38% growth from ₹1,258 crore in FY23.

Aadhar Housing Finance and India Shelter Finance are two housing finance companies that have been listed on the stock exchanges in recent months.

In June, Bajaj Housing Finance filed preliminary papers with markets regulator SEBI for a ₹7,000-crore IPO, comprising fresh shares worth ₹4,000 crore and an OFS component of ₹3,000 crore by its parent. The market regulator cleared the company's maiden public issue earlier this month.

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