Bajaj Housing Finance Limited (BHFL) has filed Draft Red Herring Prospectus (DRHP) with the Indian market regulator to launch a Rs 7,000 crore initial public offering (IPO). The public issue will comprise a fresh issue of equity shares of up to Rs 4,000 crore and an offer for sale (OFS) of up to Rs 3,000 crore, the DRHP said.
BHFL is part of the Bajaj Group with Bajaj Finance Limited and Bajaj Finserv Limited as its promoters. The company is a non-deposit taking housing finance company (HFC) and has been registered with the National Housing Bank (NHB) since September 24, 2015. It is engaged in mortgage lending since the financial year 2017-18.
In the OFS, Bajaj Finance will off-load its shares. The public offer includes a reservation of equity shares for subscription by eligible employees and a reservation for subscription by eligible shareholders of promoters including individuals and HUFs who are public equity shareholders of the promoters, the DRHP filed with the Securities and Exchange Board of India (Sebi) said.
BHFL proposes to use the net proceeds for augmenting the company’s capital base to meet future business requirements of the company towards onward lending.
In this issue, up to 50% of the net offer on a proportionate basis will be reserved for qualified institutional buyers (QIBs) provided that the company in consultation with the book running lead managers (BRLMs), may allocate up to 60% of the QIB Portion to the anchor Investors. Meanwhile the non-institutional investors’ (NIIs) quota will be reserved up to 15% of the net offer. As for the retail investors, up to 35% quota will be allocated.
The stock will be listed on both BSE and NSE.
Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited, and IIFL Securities Limited are the Book Running Lead Managers to the issue.
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 financial year 2023-24, the housing lender posted a net profit of Rs 1,731 crore, marking a growth of 38 per cent from Rs 1,258 crore in FY23.
Housing finance companies Aadhar Housing Finance and India Shelter Finance have been recently listed on the stock exchanges.
On June 6, the board of Bajaj Finance approved the sale of shares worth Rs 3,000 crore in the initial public offering of Bajaj Housing Finance.
