Bajaj Housing Finance Sets IPO Price Band At Rs 66–70 Apiece

The initial public offering of Bajaj Housing Finance Ltd. will open for subscription next week at a price band of Rs 66 to 70 per share. The wholly-owned subsidiary of Bajaj Finance Ltd. aims to mop up Rs 6,560 crore through the IPO that will open on Sept. 9.

The valuation at the upper end of the price band stands at about Rs 58,297 crore. 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 company is inviting bids from anchor investors on Sept. 6, with the IPO issue set to close on Sept. 11. The minimum lot size for bidding will be 214 shares, with further bids to be made in multiples, according to the company's price band advertisement on Tuesday.

Kotak Mahindra capital, BofA Securities India Ltd., Axis Capital Ltd., Goldman Sachs (India) Securities Pvt., SBI Capital Markets Ltd., JM Financial Ltd., and IIFL Securities Ltd. are the book-running lead managers for the issue.

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

Founded in 1926, the non-banking financial company had 3.23 lakh active customers, 83.2% of whom were home loan customers, as of June 30, 2024. The company had a network of 215 branches spread across 174 locations in 20 states and three union territories, according to their prospectus.

In Q4, Bajaj Housing Finance reported a net profit 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.