The highly anticipated Bajaj Housing Finance IPO is set to commence tomorrow, Monday, September 9. Ahead of the public offering, the gray market premium (GMP) for the company’s shares is reported to be Rs 51-52, indicating a 73% premium over the issue price. The company aims to raise approximately Rs 6,560 crore through this IPO. The price range for the shares has been set between Rs 66 and Rs 70.
Promoted by Bajaj Finance and Bajaj Finserv, the Bajaj Housing Finance IPO aims to raise Rs 6,560 crore. This amount includes Rs 3,560 crore from fresh share issuance and Rs 3,000 crore from offers for sale (OFS). In preparation for the IPO, the company has already secured Rs 1,758 crore, with shares priced at Rs 70 allocated to these investors. Notable anchor investors include the Government of Singapore, ATIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, and JP Morgan.
The funds raised from the IPO will be used to strengthen the company’s capital base, supporting future business expansion, particularly in lending. Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015, offers financing solutions for purchasing and renovating residential and commercial properties. It is classified as a high-tier NBFC by the RBI and provides a range of mortgage products, including home loans, loans against property, leasehold rent waivers, and developer financing. The company focuses primarily on personal retail home loans and supports both home buyers and large developers.
For the financial year 2023-24, Bajaj Housing Finance is projected to report a net profit of Rs 1,731 crore, reflecting a 38% increase from Rs 1,258 crore in the previous year.
The lead managers for the IPO include Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs India Securities, SBI Capital Markets, JM Financials, and IIFL Securities.