Bajaj Housing Finance Limited is a subsidiary of Bajaj Finance and recently moved closer to launching its Initial Public offering (IPO). Recently, the company filed draft papers with SEBI to get permission to issue up to Rs 7,000 crore through the IPO.
Bajaj Housing Finance Offering Details
Bajaj Housing Finance has said it will raise to ₹4,000 crore through a fresh issue of equity shares. Besides, an OFS will be used to issue equity shares depending on the company’s market conditions. The OFS component is expected to be ₹3,000 crore. This IPO complies with the RBI regulations on the ‘upper layer’ NBFCs which are expected to get listed in the first three years of being notified.
Return to the Public Market
The IPO stands as the return of the Bajaj Group to the public market after an appreciable time. The financial advisors for this large transaction include Kotak Mahindra Capital, Axis Capital, Bank of America Merrill Lynch, JM Financial, SBI Capital, Goldman Sachs, and IIFL Capital. Based on the current guidelines of RBI, the current timeline for Bajaj Housing Finance to list is before September 2025.
Market Expectations from Bajaj Housing Finance
PhillipCapital believes that the Bajaj Housing Finance will be listed by September 2025 with an expected listing price of ₹550-570 per share. The company delivers its services to clients of over 76.5 million customers in India only to avail finance for the purchase of homes as well as for home improvements. It has a total asset under management of ₹85,929 crore as of December 31, 2013, showing an incremental growth of 31% over the previous year.
Conclusion
For its IPO, Bajaj Housing Finance plans to get ₹7,000 crore. The financial service industry is the industry that Bajaj Housing Finance falls under, more specifically housing finance. After the revelation of the IPO intention, shares of Bajaj Finance surged more than 5 percent on Friday.
Moreover, the company recorded a 21 percent increase in productivity compared to the previous financial year. It anticipates 1% year-on-year growth in net profit for the fourth quarter ending on March 31, of the fiscal year 2024.
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