MUMBAI: After many years, the Bajaj group is planning to the hit primary market with a mega Rs 4000-corre IPO along with an offer for sale by promoters for its housing finance arm, which currently is under Bajaj Finance. According to an exchange filing, Bajaj Finance board Thursday approved listing of Bajaj Housing Finance through an IPO which will include fresh issue worth Rs 4,000 crore and an offer for sale depending on valuation and market conditions. The mega listing will mark the return of the Bajaj group to the public market after several years.
Under the RBI norms, a systematically important or an upper layer NBFC, which Bajaj Housing Finance is, has to list by September 2025. According to the September 2022 RBI notification, an upper layer NBFC has to go public within three years of being notified as one.
Bajaj Housing Finance is a subsidiary of the parent Bajaj Finance, exchange filing did not offer a timeline for the same. However, a market source told the TNIE that the company will be filing the draft red herring prospectus with the Sebi shortly.
Earlier, the company had appointed Kotak Mahindra Capital, Axis Capital, BofA Securities, JM Financial and SBI Capital for advisors to the issue.
Blackstone-backed Aadhar Housing Finance and Westbridge-backed India Shelter Finance were the two IPOs from the home finance side this year.
Apart from Bajaj Housing, the upper layer NBFCs include Tata Sons, HDB Financial Services, Tata Capital, and Aditya Birla Finance among others
Bajaj Housing has over 76.5 million customers and the Pune-based firm offers finance to individuals and corporates for the purchasing or renovation of homes and commercial spaces.
For the nine months to December 2023, Bajaj Housing had a loan book of Rs 85,929 crore, which was 31 per cent more than the year-ago period. Net disbursements rose by 31 per cent to Rs 25,308 crore, while net profit jumped 41 per cent to Rs 1,350 crore.
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