Bajaj Housing Finance set to launch ₹7,000 crore IPO in early September: Report

The initial public offering (IPO) of Bajaj Housing Finance, worth ₹7,000 crore, is set to hit the markets in early September, according to media reports. As this IPO is one of the most eagerly awaited offerings, investors are keeping a close watch on the price band and dates.

The mainboard public offer of the wholly-owned subsidiary of Bajaj Finance is expected to open for subscription in early September, a Livemint report mentioned quoting sources.

Bajaj Housing Finance, the non-deposit taking housing finance arm of Bajaj Finance, filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for the IPO in June 2024.

Bajaj Housing Finance IPO: Offer size and other details

According to the DRHP, the IPO will consist of a fresh issue of equity shares worth ₹4,000 crore. Bajaj Finance Limited, the parent company, plans to sell shares worth ₹3,000 crore through an offer-for-sale (OFS).

The company will set aside 50% of the net offer size for Qualified Institutional Buyers, 35% for retail individual investors, and the remaining 15% for non-institutional Investors (NIIs). The issue size may also include a reserved portion for employees.

According to the DRHP, the book-running lead managers for Bajaj Housing Finance are Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, and IIFL Securities Ltd.

Bajaj Housing Finance IPO objective

The company plans to use the net proceeds from the IPO to strengthen its capital base, which will support future business needs, particularly its lending business. The Bajaj Group firm expects several benefits from listing its shares on the stock exchanges, including increased brand visibility and the creation of a public market for its shares in India. A portion of the funds raised will also cover offer-related expenses.

Bajaj Housing Finance IPO: Key financial details

For the quarter ended June 30, 2024, Bajaj Housing Finance reported a net profit of ₹482.61 crore, marking a 4.51% increase from ₹461.80 crore in Q1FY24. The company’s revenue from operations stood at ₹2,208.65 crore, up 25.28% compared to ₹1,763.25 crore in the quarter ended June 30, 2023.