Shares of Bajaj Twins – Bajaj Finance, Bajaj Finserv rose as much as 3 percent on August 29 as reports suggested that Bajaj Housing Finance may launch its initial public offering (IPO) as early as the first half of September 2024. The company will clear Rs 7,000 crore from this edition.
The IPO will have a special quota for shareholders of Bajaj Finserv and Bajaj Finance, both of which are classified as ‘promoters’. Bajaj Finance has 100 percent stake in Bajaj Housing, while Bajaj Finserv holds 51.34 percent in Bajaj Finance. The public issue will have a fresh issue of Rs 4,000 crore and an offer for sale of Rs 3,000 crore. Then the IPO would be listed on both BSE and NSE.
Although the company is yet to announce a price band, Bajaj Housing Finance already has a gray market premium of Rs 41 on unlisted markets.
In early June, Bajaj Housing Finance filed a proposed red herring prospectus (DRHP) for its Rs 7,000 crore IPO with Sebi. It had to comply with the Reserve Bank of India’s rules, which meant putting non-banking finance companies in the top tier by September 2025.
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The lead account managers are Kotak Mahindra Capital, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities. The registrar of the issue was KFin Technologies. Bajaj Housing will use the net proceeds from the new issue to expand its capital base to meet future business requirements. A portion of the proceeds from the reissue will be used to cover the costs of the offering.
According to its website, Bajaj Housing Finance is a diversified NBFC serving over 76.5 million customers across the country. Based in Pune, it offers financing to individuals and companies for the purchase and renovation of homes or commercial premises.
As of March 2024, the company’s assets under management (AUM) stood at Rs 9.14 crore, growing at an annualized rate of 30.9 percent between FY22 and FY24. The average home loan ticket size is Rs 46,000 with an average loan-to-value ratio of 70.5 percent as of 31.
