Bajaj Housing Finance Seeks ₹7,000 Crore via IPO: Full Details Here

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Bajaj Housing Finance, a subsidiary of parent company Bajaj Finance, has filed its preliminary draft papers with the Securities and Exchange Board of India (SEBI) to raise funds amounting to ₹7,000 crore through an upcoming initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth up to ₹4,000 crore and an offer for sale (OFS) of up to ₹3,000 crore by the selling shareholder, Bajaj Finance Limited. The company’s intention to offload shares via the public issue is detailed in the draft red herring prospectus (DRHP) submitted to SEBI.

The funds raised from the IPO will be utilized by Bajaj Housing Finance to enhance its capital base, catering to future business requirements and lending activities. As part of the IPO process, the company has also included a reservation of equity shares for subscription by eligible employees and shareholders.

Furthermore, the filing of the draft papers follows the approval from the board of Bajaj Finance to sell shares worth ₹3,000 crore in the IPO of Bajaj Housing Finance. This move is in compliance with the regulations set by the Reserve Bank of India (RBI) for upper-layer Non-Banking Financial Companies (NBFCs), which require listing on stock exchanges by September 2025.

Bajaj Housing Finance is a key player in the housing finance sector, providing mortgage lending solutions for both residential and commercial properties. The company’s widespread mortgage product offerings include home loans, loans against property, lease rental discounting, and financing for developers. In the financial year 2023-24, the lender reported a net profit of ₹1,731 crore, reflecting a growth of 38% from the previous year.

With a strong credit rating from CRISIL and India Ratings, Bajaj Housing Finance stands out in the market. The company’s focus on quality assets and diverse product portfolio has positioned it as a significant player in the industry. As the company prepares to enter the public market, investors are eager to see the outcome of the IPO and its impact on the housing finance landscape in India.