CORPORATE
Bajaj Housing Finance files papers for Rs 7,000-cr IPO to meet RBI norms
- IBJ Bureau
- Jun 09, 2024
Bajaj Housing Finance has filed preliminary papers with capital markets regulator SEBI to raise Rs 7,000 crore through an initial public offer (IPO).
The proposed IPO comprises a fresh issue of equity shares of up to Rs 4,000 crore and an Offer For Sale (OFS) of equity shares worth Rs 3,000 crore by parent Bajaj Finance, according to the Draft Red Herring Prospectus (DRHP).
The share sale is being conducted to comply with the Reserve Bank of India’s (RBI) regulations, which require upper-layer non-banking finance companies NBFCs) to be listed on stock exchanges by September 2025.
Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
Bajaj Housing Finance is a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015. It offers financial solutions for purchasing and renovating residential and commercial properties.
It has been identified and categorised as an upper-layer NBFC by the RBI in India, and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing.
For the entire financial year 2023-24, the housing lender posted net profit of Rs 1,731 crore, marking growth of 38 per cent from Rs 1,258 crore in FY23.
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