Bajaj Housing Finance board approves IPO plan to raise ₹4,000 crore via fresh issue plus OFS component

Bajaj Housing Finance announced on Thursday, June 6, that its board has approved an initial public offering (IPO) plan, which involves raising ₹4,000 crore via fresh issue and an offer-for-sale (OFS) component separately. The public issue would include a sale of shares by existing shareholders, said the Bajaj Finance subsidiary in a statement today.

“This is to inform you that the Board of Directors of the company at its meeting held today. i.e. 6 June 2024 has approved an initial public offering of equity shares of ₹10 each of the company (‘equity shares’),” the company said.

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The IPO would be subject to market conditions, approvals and regulatory clearances, said the unit of the non-banking finance company (NBFC).

In September 2022, the Reserve Bank of India (RBI) had released a list of upper-layer NBFCs, or those entities with ₹50,000 crore of assets under management. Bajaj Housing Finance, which was a part of the RBI list, was required to be listed on stock exchanges by September 2025.

Bajaj Finance Q4 Results

For the fourth quarter ended March 31 of fiscal year 2024, Bajaj Finance had reported a 21.1 per cent year-on-year growth in its net profit at ₹3,824.53 crore. The net interest income (NII) rose 21.1 per cent at ₹3,824.53 crore as compared with Rd 3,157.8 crore in the corresponding quarter of FY23.

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In April, Bajaj Finance had asked the RBI to remove restrictions on two of its lending products. In November 2023, the RBI had banned the non-banking lender from issuing loans under “eCOM” and “Insta EMI Cards” products, saying the lender did not issue key information to borrowers. The Insta EMI card offers consumers pre-approved credit for small ticket purchases, while eCOM is a consumer financing facility for online shopping via e-commerce sites.

Shares of Bajaj Finance Ltd ended at ₹6,923.25, up by ₹83.15, or 1.22 per cent, on the BSE on Thursday.