Bajaj Housing Finance Seeks Rs 7,000 Crore IPO: DRHP Highlights Path to Compliance

Bajaj Housing Finance has submitted initial papers with capital markets regulator SEBI to raise Rs 7,000 crore through an initial public offering (IPO).

The proposed IPO includes a fresh issue of equity shares of up to Rs 4,000 crore and an offer for sale (OFS) of equity shares worth Rs 3,000 crore by parent company Bajaj Finance, as stated in the draft red herring prospectus (DRHP).

The share sale is being conducted to comply with the Reserve Bank of India’s (RBI) regulations, which mandate upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

The proceeds from the fresh issue will be utilized to bolster the company’s capital base to meet future capital requirements. Bajaj Housing Finance is a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015, offering financial solutions for the purchase and renovation of residential and commercial properties.

It has been categorized as an “upper layer” NBFC by the RBI in India, and its comprehensive mortgage products include home loans, loans against property, lease rental discounting, and developer financing. In the entire financial year 2023-24, the housing lender recorded a net profit of Rs 1,731 crore, signifying a growth of 38 per cent from Rs 1,258 crore in FY23. Housing finance companies Aadhar Housing Finance and India Shelter Finance have recently been listed on the stock exchanges.

On June 6, the board of Bajaj Finance approved the sale of shares worth Rs 3,000 crore in the initial public offering of Bajaj Housing Finance.

Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd are the book-running lead managers who will oversee the company’s public offering.