Bajaj Housing Finance to Raise Rs 7,000 Crore Through IPO

Bajaj Housing Finance has officially filed a Draft Red Herring Prospectus (DRHP) with the SEBI for its forthcoming Initial Public Offering (IPO). The public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 4000 Crore of equity shares. The face value mentioned by the company is Rs. 10 for each share. Additionally, Bajaj Finance Ltd, the parent company, will divest shares worth ₹3,000 crores through an offer for sale as outlined in the prospectus, aggregating to the total size of the offer is Rs 7000 Crore. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. However, the public issue price band at which you can bid will be declared soon.

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About the Company

Bajaj Housing Finance is a non-deposit-taking Housing Finance Company registered with the National Housing Bank on September 24, 2015, and has engaged in mortgage lending since Fiscal 2018. Recognized as an "Upper Layer" NBFC by the RBI, the firm offers tailored financial solutions for purchasing and renovating homes and commercial spaces. Its product suite includes home loans, loans against property, lease rental discounting, and developer financing. As of March 31, 2024, Bajaj Housing Finance is the largest non-deposit-taking HFC in India by AUM, with an AUM of ₹913,704 million and high profitability. The firm is part of the Bajaj Group, with a vast network of 215 branches across 20 states and three union territories, serving 308,693 active customers.

Objectives of the Public Offering

Bajaj Housing Finance plans to allocate the net proceeds from the fresh issue primarily towards bolstering its capital base, ensuring the company can meet future business requirements and growth objectives. A segment of the funds will also be allocated to cover the expenses incurred during the IPO process.

Financials of the Company

In the period ended March 31, 2024, the company showed strong financial growth. Revenue increased by 34.5% to Rs 7,617.31 crore, and profit after tax rose by 37.6% to Rs 1,731.22 crore. The company's net worth increased by 16.5% to Rs 12,233.50 crore. Total borrowing also went up by 28.6% to Rs 69,129.32 crore. All the figures are mentioned in the DRHP filed by the company.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The IPO is managed by several giants those are Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Pvt Ltd, SBI Capital Markets Ltd, JM Financial Ltd and IIFL Securities Ltd, which are the book-running lead managers of this public issue. KFin Technologies Ltd has been appointed as the registrar to manage this public offering, while the company's promoters are Bajaj Finance Limited and Bajaj Finserv Limited.

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