Bajaj Housing Finance Gears Up for Rs 6,560-Crore IPO in September

Bajaj Housing Finance is set to launch its Rs 6,560-crore initial public offering (IPO) on September 9, closing by September 11. The funds will bolster the company's capital base. Recently categorized as an 'upper layer' NBFC by RBI, the company posted a 38% net profit growth for 2023-24.

Bajaj Housing Finance will launch its highly anticipated Rs 6,560-crore initial public offering (IPO) for public subscription starting September 9 and closing on September 11. According to the red herring prospectus (RHP), anchor investors can start bidding on September 6.

The IPO includes a fresh equity issue worth Rs 3,560 crore and an offer for sale (OFS) of Rs 3,000 crore by parent Bajaj Finance. This share sale aligns with the Reserve Bank of India's (RBI) regulations necessitating that upper-layer non-banking financial companies (NBFCs) get listed on stock exchanges by September 2025.

Bajaj Housing Finance plans to use the fresh issue's proceeds to strengthen their capital base for future needs. Registered with the National Housing Bank since September 2015, this non-deposit taking housing finance firm offers a variety of mortgage products. Their recent financial reports reveal a net profit growth of 38% in 2023-24. The company's IPO received Securities and Exchange Board of India (Sebi) clearance this month, and leading firms like Kotak Mahindra Capital and SBI Capital Markets will manage the public issue.

(With inputs from agencies.)