Introduction
Founded nearly 98 years ago, Bajaj Group’s subsidiary, Bajaj Housing Finance, is set to launch its Initial Public Offering (IPO) on September 9. The company is planning a massive IPO valued at ₹6,560 crores. According to the company’s Red Herring Prospectus (RHP), the IPO will close on September 11. Institutional investors will have the opportunity to place their bids a day earlier, on September 6. This IPO consists of fresh equity shares worth up to ₹3,560 crores and an Offer For Sale (OFS) of equity shares worth ₹3,000 crores from its parent company, Bajaj Finance.
Compliance with RBI Regulations
The IPO is being executed in accordance with the guidelines set by the Reserve Bank of India (RBI). As per these regulations, upper-tier Non-Banking Financial Companies (NBFCs) must be listed on stock exchanges by September 2025. The proceeds from the new issue are intended to enhance the company’s capital base and meet future capital requirements. Bajaj Housing Finance has been a registered housing finance company with the National Housing Bank since September 2015. Notably, it does not accept deposits and provides loans for the purchase and renovation of residential and commercial properties. The RBI has identified and classified it as an upper-tier NBFC in India.
Financial Performance: Profit Insights
For the financial year 2023-24, Bajaj Housing Finance reported a net profit of ₹1,731 crores, marking a significant 38% increase compared to ₹1,258 crores in the fiscal year 2022-23. This impressive growth reflects the company’s robust operational performance and market position. Two other housing finance companies, Aadhar Housing Finance and India Shelter Finance, have also made their debuts in the stock market in recent months. Additionally, Bajaj Housing Finance submitted a draft red herring prospectus to SEBI for a ₹7,000 crore IPO in June, and the regulatory body approved the company’s initial public offering earlier this month.
Table: Key IPO Details
| Details | Information |
|---|---|
| IPO Launch Date | September 9, 2023 |
| IPO Closing Date | September 11, 2023 |
| Anchor Investor Bidding Date | September 6, 2023 |
| Total IPO Size | ₹6,560 crores |
| Fresh Equity Shares | Up to ₹3,560 crores |
| OFS from Bajaj Finance | ₹3,000 crores |
| Previous Financial Year Profit | ₹1,731 crores (FY 2023-24) |
Conclusion
With a promising financial outlook and adherence to RBI regulations, Bajaj Housing Finance’s upcoming IPO is set to be a significant event in the financial markets. Investors and market participants are keenly observing this development as the company aims to further enhance its growth trajectory while tapping into the robust demand for housing finance in India.
