Bajaj Housing Finance Files Papers with Sebi for Rs 7,000 Crore IPO

Bajaj Housing Finance Files Papers with Sebi for Rs 7,000 Crore IPO

Keywords: Bajaj Housing Finance, IPO, Sebi, Real Estate Finance

Bajaj Housing Finance, a subsidiary of Bajaj Finserv, has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise Rs 7,000 crore through an initial public offering (IPO).

The IPO will comprise a fresh issue of equity shares aggregating up to Rs 2,500 crore and an offer for sale (OFS) of up to 50,000,000 equity shares by existing shareholders. The OFS will include the sale of shares by Bajaj Finserv, which currently holds a 58.46% stake in Bajaj Housing Finance.

The net proceeds from the fresh issue will be utilized for augmenting the company’s Tier-1 capital base, supporting growth in its housing finance business, and for general corporate purposes.

Bajaj Housing Finance is primarily engaged in providing a range of housing finance products to individual customers, including home loans, loans against property, and home equity loans. As of March 31, 2023, the company had a loan book of over Rs 1 lakh crore, with a customer base of over 3 million.

The company is one of the leading players in the affordable housing finance segment and has a market share of approximately 10% in this space. Bajaj Housing Finance has a pan-India presence with over 1,200 branches and over 8,000 touchpoints.

The IPO is expected to hit the markets in the second quarter of 2023, subject to regulatory approvals. The book running lead managers for the issue will be Kotak Mahindra Capital Company, Axis Capital, ICICI Securities, and JP Morgan India.