Bajaj Housing Finance Limited’s initial public offering (IPO) will open for subscription on September 9, 2024. The non-banking financial company (NBFC) seeks to raise ₹6,560 crore from the public issue.
Bajaj Housing Finance Ltd. falls under the Reserve Bank of India’s (RBI)“Upper-layer” NBFC. To comply with RBI’s norms, NBFC’s in this layer have to be listed on the exchanges by September 2025.
Here are the key things to look out for in Bajaj Housing Finance IPO:
1. IPO valuation: The non-banking lender has valued the IPO at ₹6,560 crore, with a face value of ₹10 per equity share. The company is offering a fresh issue and an Offer for sale (OFS) issue in the public listing.
2. IPO offer structure details: Bajaj Housing Finance plans to raise ₹3,560 crore from the fresh issue of shares at a face value of ₹10 per share and ₹3,000 crore from its Offer for Sale (OFS) issue at a face value of ₹10 per equity share, according to the company Red Herring Prospectus (RHP). This brings the total value of the issue to ₹6,560 crore.
3. IPO dates: The non-banking lender’s IPO will open for subscription on Monday, September 9. The mainboard IPO’s price band will be announced on Tuesday, September 3. The issue will have a three-day bidding window and close on Wednesday, September 11. The IPO will open for its anchor subscription round on Friday, September 6, as per the filing.
4. IPO Allocation details: Bajaj Housing Finance plans to allocate not more than 50 per cent of the net offer to Qualified Institutional Buyers (QIB) on a proportional basis. In consultation with the book runners, the company may allocate up to 60 per cent of the QIB portion to anchor investors. The company has planned to offer not less than 15 per cent of the net offer to the non-institutional investors (NII) and not less than 35 per cent to retail investors, according to the RHP filing.
5. Book-running managers and Registrar: The book runners for the public issue are Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited and IIFL Securities Ltd. Kfin Technologies Limited is the registrar for the public issue.
6. Promoter selling stake: Bajaj Housing Finance’s promoter, Bajaj Finance Limited, is shedding equity shares worth ₹3,000 crore at a face value of ₹10 per share.
7. IPO objective: The non-banking lender aims to use the amount raised from the public offer to strengthen its capital base for future lending activities and cover offer-related expenses. The IPO listing will help the company with the benefits of brand recognition and public presence as a listed entity on the secondary market.
8. IPO proceeds investment details: The proceeds from the IPO are to be deployed in usage over the financial year 2024-25. As per the filing, the fund will be deployed based on the company’s current business plan, management estimates, prevailing market conditions, and other commercial and technical factors.
9. Total asset under management (AUM): As of June 2024, the company’s AUM stood at ₹97,071.33 crore, compared to ₹74,124.26 crore in the same period the previous year.
10. Company details: Bajaj Housing Finance, a non-banking financial company was founded in 2008 and is a wholly-owned subsidiary of Bajaj Finance. The NBFC is part of the Bajaj Group and provides customized financial solutions to individuals and corporations for the purchase and renovation of homes and commercial spaces. The company’s comprehensive housing finance products range between home loans, loans against property, rent concessions, and developer finance.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess