Bajaj Housing Finance To Raise Rs 6,560 Crore Through IPO

The IPO issue will open on Sept. 9 and close on Sept. 11.

IPO. (Source: Unsplash)

Bajaj Housing Finance Ltd., a wholly owned subsidiary of Bajaj Finance Ltd., plans to raise Rs 6,560 crore through an initial public offering that is set to open for subscription on Sept. 9.

The IPO comprises a fresh issue amounting to Rs 3,560 crore and an offer-for-sale aggregating to Rs 3,000 crore from its promoter company Bajaj Finance. The equity shares carry a face value of Rs 10 each.

The company is inviting bids from anchor investors on Sept. 6, with the IPO issue set to close on Sept. 11.

The company intends to use the net proceeds to augment its capital base to meet future business requirements for onward lending.

The shares will be available to qualified institutional buyers, retail individual bidders, non-institutional bidders, eligible employees, and eligible shareholders. The employee reservation portion shall not exceed 5% of the post-offer paid-up equity share capital.

Anchor investors may receive up to 60% of the QIB portion on a discretionary basis, and domestic mutual funds will receive one-third of this allocation. Non-institutional bidders will have their allocation divided, with one-third reserved for those applying for equity shares worth between Rs 2 lakh and Rs 10 lakh, and two-thirds for those applying for shares worth more than Rs 10 lakh.

NDTV Profit had in March reported that Bajaj Housing Finance is expecting a valuation of around $8–10 billion. The tentative size of the IPO is expected to be around $1 billion.

Accordingly, the company was planning to file a draft prospectus for the IPO in June with the marketing activities and roadshow preparation in August. 

In Q4, Bajaj Housing Finance reported a PAT of Rs 381 crore, up 26% year-on-year. Its net interest income, or core income, grew 11% on a yearly basis to Rs 629 crore.

The company's assets under management increased 32% year-on-year to Rs 91,370 crore. Net total income rose 14% year-on-year to Rs 717 crore.

Its overall approvals increased 19% year-on-year to Rs 19,417 crore, and disbursements grew 26% year-on-year to Rs 11,393 crore.

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