From this IPO, Bajaj Housing Finance will pocket Rs 7,000 crore.
On August 29, Bajaj Twins’ stock, which includes Bajaj Finance and Bajaj Finserv, saw a spike of up to 3% as rumours circulated that Bajaj Housing Finance might conduct an initial public offering (IPO) as early as the first half of September 2024. From this issue, the company will seize Rs 7,000 crore.
A special quota will be available for shareholders of Bajaj Finserv and Bajaj Finance, who are both considered “promoters,” in the IPO. Bajaj Finserv owns 51.34 percent of Bajaj Finance, while Bajaj Finance owns 100% of Bajaj Housing. There will be a Rs 3,000 crore offer-for-sale and a Rs 4,000 crore fresh issue in the public offering. The IPO would subsequently be listed on the BSE and NSE.
In unlisted markets, Bajaj Housing Finance is already fetching a grey market premium of Rs 41, even though the company hasn’t yet disclosed the price band.
Bajaj Housing Finance submitted its draft red herring prospectus (DRHP) for a Rs 7,000-crore initial public offering (IPO) to Sebi earlier in June. By September 2025, it had to adhere to Reserve Bank of India regulations requiring the listing of upper-layer non-banking finance companies on stock exchanges.
The book-running lead managers are Kotak Mahindra Capital, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities. The issue registrar was KFin Technologies. The net proceeds from the new issue will be used by Bajaj Housing to increase its capital base in order to meet its future needs. The costs associated with the offer will be covered in part by the proceeds from the new issue.
According to its website, Bajaj Housing Finance is a diversified NBFC that serves more than 76.5 million clients nationwide. With its headquarters in Pune, the company provides financing to both private citizens and businesses looking to buy and renovate residential or commercial properties.
The assets under management (AUM) of the company as of March 2024 were Rs 9.14 lakh crore, increasing at an annualized rate of 30.9 percent between FY22 and FY24. As of March 31, the average ticket size for home loans offered by the company was Rs 46 lakh, with an average loan-to-value ratio of 70.5 percent.
