Bajaj Housing Finance IPO Update: Files Papers for Rs 7,000 Crore Equity Shares with SEBI

Bajaj Housing Finance, a subsidiary of Bajaj Finance, has filed papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise Rs 7,000 crore. The IPO will consist of a fresh issue of shares worth Rs 4,000 crore and an offer for sale (OFS) of shares worth Rs 3,000 crore by Bajaj Finance.

The primary purpose of the IPO is to comply with the Reserve Bank of India’s (RBI) regulations, which mandate large non-banking finance companies to list on stock exchanges by September 2025. The funds raised from the IPO will enable Bajaj Housing Finance to strengthen its capital base and support future growth.

Established in September 2015, Bajaj Housing Finance is a housing finance company registered with the National Housing Bank. It offers a variety of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing. In the financial year 2023-24, the company reported a net profit of Rs 1,731 crore, marking a 38% increase from the previous year.

The IPO will be managed by Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd. This move comes after the approval by Bajaj Finance’s board to sell shares worth Rs 3,000 crore in the IPO of Bajaj Housing Finance.

Overall, the IPO filing by Bajaj Housing Finance signifies a significant milestone for the company and the broader financial sector. Investors and market analysts will be closely monitoring the developments leading up to the IPO launch to gauge the potential impact on the market.