Bajaj Housing Finance, a subsidiary of the Bajaj Group and promoted by Bajaj Finance and Bajaj Finserv, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering to raise up to Rs 7,000 crore.
Earlier, the company announced that the public issue would comprise a fresh issue of shares worth Rs 4,000 crore. According to the DRHP, parent company Bajaj Finance would sell shares worth an additional `3,000 crore through an offer for sale.
Kotak Investment Banking, Axis Capital, BofA Securities, Axis Capital, Goldman Sachs, SBICAPS, JM Financial and IIFL Securities are book running lead managers to the issue.
The company plans to use the net proceeds from the offer to augment its capital base to meet future business requirements towards onward lending. The company also plans to utilise the proceeds to cover offer-related expenses.
The public offer includes reservation of equity shares for subscription by eligible workers, as well as reserves with a face value of Rs 10 each for subscription by eligible owners of the promoters, including persons and HUFs who are the promoters’ public equity owners.
In September 2022, the Reserve Bank of India (RBI) published a list of upper-layer NBFCs or enterprises with assets under management of Rs 50,000 crore. According to the RBI criteria, Bajaj Housing Finance, which was on the list, was slated to be listed on the bourses in September 2025.
The non-deposit taking housing finance company’s listed peers include PNB Housing Finance, Aadhar Housing Finance and Aavas Financiers.
Assets under management of Bajaj Housing Finance rose 32% year-on-year to `91,370 crore as on March 31. The net profit rose 26% YoY to `381 crore in the March quarter.