Bajaj Housing Finance IPO: Bajaj Housing Finance, a subsidiary of the Bajaj Group and promoted by Bajaj Finance Limited and Bajaj Finserv Limited, filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering last week on June 7. Bajaj Housing Finance is a non-deposit housing finance company that has been involved in mortgage lending from fiscal 2018.
The public offering comprises a fresh share issuance at ₹4,000 crore. According to the draft red herring prospectus (DRHP), parent company Bajaj Finance Ltd would sell shares worth an additional ₹3,000 crore through an offer for sale.
The firm aims to use the net proceeds from the fresh issue to increase its capital base in order to fulfill the company's future business requirements for onward lending. Furthermore, the firm aims to reap the benefits of listing its equity shares on stock exchanges, such as increased brand recognition and the establishment of a public market for its equity shares in India. Furthermore, a portion of the proceeds from the Fresh Issue will be utilised to cover offer expenses.
The public offer includes a reservation of equity shares for subscription by eligible workers, as well as a reserve with a face value of ₹10 each for subscription by Eligible owners of the Promoters, including persons and HUFs who are the Promoters' public equity owners.
In September 2022, the Reserve Bank of India (RBI) published a list of upper-layer NBFCs, or enterprises with assets under control of ₹50,000 crores. According to RBI criteria, Bajaj Housing Finance, which was on the list, was slated to be listed on the bourses in September 2025.
As per a CNBC TV18 news report , Bajaj Housing Finance is a 100% subsidiary of Bajaj Finance. Bajaj Finserv holds a 51.34 percent interest in Bajaj Finance.
Book Running Lead Managers for the offering are Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, and IIFL Securities Ltd.
As per the DRHP, the company's listed peers are LIC Housing Finance (with a P/E of 7.3), PNB Housing Finance (with a P/E of 12.4), Can Fin Homes (with a P/E of 12.9), Aadhar Housing Finance (with a P/E of 18.7), Aavas Financiers (with a P/E of 3.3), Aptus Value Housing Finance (with a P/E of 24.6), and Home First Finance (with a P/E of 24.3).
For the entire financial year 2023-24, the housing lender posted a net profit of ₹1,731 crore, marking a growth of 38 per cent from ₹1,258 crore in FY23. The company's percentage of home loans to total assets under management (AUM) as of March 31, 2024, was 57.8 per cent, down from 61.7 per cent from last year.
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