Sebi gives go-ahead to Bajaj Housing Finance’s ₹7,000 crore IPO

Mumbai: Bajaj Housing Finance, the wholly owned housing finance subsidiary of Bajaj Finance, has received the Securities and Exchange Board of India’s (Sebi) approval for its proposed initial public offering (IPO).

The non-deposit taking housing financier had filed the draft prospectus for the ₹7,000 crore IPO with the regulator in June 2024 to comply with Reserve Bank of India’s (RBI) regulations mandating listing of upper-layer non-banking finance companies (NBFC-UL) on the stock exchanges by September 2025.

The issue is proposed to include fresh issue of shares worth up to ₹4,000 crore and an offer for sale of up to ₹3,000 crore by promoter Bajaj Finance. Bajaj Housing plans to use the proceeds from the fresh issue to augment its capital base to meet future business requirements towards onward lending.

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Kotak Mahindra Capital, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book-running lead managers for the IPO.

The NBFC offers financial solutions to individuals and corporate entities for the purchase and renovation of homes and commercial spaces. The product suite comprises home loans, loans against property (LAP), lease rental discounting and developer financing.

Q1 financials

Bajaj Housing Finance posted a net profit of ₹483 crore in Q1 FY25, up 5% on year. Its assets under management stood at ₹97,071 crore as at the end of June. Home loans accounted for 57% of the portfolio, loans against property for 10%, lease rental discounting for 20%, and dealer finance for 11% of the total portfolio.

Disbursements for the quarter were ₹12,004 crore across a network of 174 locations. The lender’s gross non-performing asset (NPA) ratio was at 0.28% and net NPA ratio at 0.11% as of 30 June, slightly worse than 0.23% and 0.08% a year ago, respectively.