Bajaj Finance, Bajaj Finserv shares gain over 3% amid buzz over Bajaj Housing Finance IPO

According to reports, Bajaj Housing Finance Ltd's initial public offering (IPO) is likely to open for subscription in the first half of September. Bajaj Housing Finance filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) in June.

The company aims to raise ₹7,000 crore through its public issue. Bajaj Housing Finance IPO, a book-built issue, consists of a fresh issue of shares aimed at raising ₹4,000 crore and an offer for sale (OFS) of ₹3,000 crore.

Bajaj Finance Limited and Bajaj Finserv Limited are Bajaj Housing Finance’s promoters and jointly hold a 100% stake in the company. According to the DRHP, Bajaj Finance is likely to participate in the OFS. Shares of Bajaj Housing Finance will be listed on the NSE and BSE exchanges after the completion of its public issue.

The book-running lead managers for Bajaj Housing Finance IPO are Kotak Mahindra Capital, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities. KFin Technologies is the registrar for Bajaj Housing Finance IPO.

Bajaj Housing plans to use the money raised via the fresh issue of shares to augment its capital base and meet future business requirements.

Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) that was registered with the National Housing Bank (NHB) in 2015. The company provides customised financial solutions to individuals and corporations for the purchase and renovation of homes and commercial spaces.

Shares of Bajaj Finance Ltd rallied as much as 3.73% to hit an intraday high of ₹7,158 apiece on the NSE. However, the stock pared early gains to close at ₹7,066 apiece, up 2.42%. On the other hand, Bajaj Finserv shares gained up to 3.41% to hit an intraday high of ₹1,772 apiece on the NSE. The stock later trimmed some of its early gains to close at ₹1,758 apiece, up 2.61%, on the NSE.