Bajaj Housing Finance, a subsidiary of the Bajaj Group and backed by Bajaj Finance and Bajaj Finserv, has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO) aiming to raise to Rs 7,000 crore.
The business had previously said that a new issue of shares valued at Rs 4,000 crore would be part of the public offering. As per the DRHP, the parent company Bajaj Finance plans to offload shares worth an additional Rs 3,000 crore through an offer for sale.
Kotak Investment Banking, Axis Capital, BofA Securities, Goldman Sachs, SBICAPS, JM Financial, and IIFL Securities are acting as book-running lead managers to the issue.
The company intends to utilize the net proceeds from the offer to bolster its capital base to meet future business needs for onward lending. Additionally, the proceeds will be used to cover offer-related expenses.
The public offer includes a reservation of equity shares for subscription by eligible employees, as well as reserves with a face value of Rs 10 each for subscription by eligible shareholders of the promoters, including individuals and HUFs who are public equity owners of the promoters.
Also Read: Paras Defence
In September 2022, the Reserve Bank of India (RBI) published a list of upper-layer NBFCs or entities with assets under management of Rs 50,000 crore. Bajaj Housing Finance, which was on the list, was supposed to go public on stock exchanges in September 2025, based on RBI criteria.
Aavas Financiers, PNB Housing Finance, and Aadhar Housing Finance are among the listed competitors of the non-deposit-taking housing finance company.
Assets under management of Bajaj Housing Finance increased by 32% year-on-year to Rs 91,370 crore as of March 31. The net profit rose by 26% YoY to Rs 381 crore in the March quarter.
