Bajaj Housing Finance has submitted the draft papers for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The firm plans to float its maiden offer worth Rs 6,560 crore and will start accepting bids for its listing from September 9, 2024.
The red herring prospectus (RHP) filed by the firm revealed that the last day to apply for the IPO will be September 11 and anchor investors will be able to bid for the issue on September 6. The maiden listing includes a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of shares coming up to Rs 3,000 crore by the parent entity, Bajaj Finance, reported PTI.
The firm is conducting the IPO as part of compliance with the Reserve Bank of India (RBI)’s norms which require upper-layer non banking financial companies (NBFCs) to list publicly on the stock exchanges by September 2025.
The company plans to utilise the proceeds from the issue towards expanding its capital base to cater to financial requirements ahead. The firm is a non-deposit taking housing finance entity and has been registered with the National Housing Bank since September 2015.
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The firm focuses on providing financial solutions for acquiring and renovating properties, both residential and commercial. The central bank identifies the company as an upper layer NBFC, along with its mortgage products such as home loans, lease rental discounting, developer financing, and loans against property.
It clocked a net profit of Rs 1,731 crore in the 2023-24 fiscal year (FY24), registering a surge of 38 per cent against Rs 1,258 crore in the preceding 2022-23 fiscal year (FY23). The book running lead managers of the issue include Kotak Mahindra Capital Company Ltd, JM Financial Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, and Goldman Sachs (India) Securities Private Ltd.