Bajaj Housing Finance Limited is gearing up for its IPO on September 9, 2024, targeting a raise of ₹6,560 crore from investors.

Bajaj Housing Finance Limited will launch its initial public offering (IPO) on September 9, 2024, aiming to raise ₹6,560 crore from investors.

Designated as an “Upper-layer” non-banking financial company (NBFC) by the Reserve Bank of India (RBI), Bajaj Housing Finance Ltd. must complete its listing on the stock exchanges by September 2025 to comply with RBI regulations.

Here’s a simplified guide to the Bajaj Housing Finance IPO with key points to consider

IPO Valuation

Bajaj Housing Finance aims to raise ₹6,560 crore from its IPO. Each share is priced at ₹10, with new and existing shares being offered.

Offer Structure

The IPO includes ₹3,560 crore from new shares and ₹3,000 crore from existing shares, all priced at ₹10 each, totaling ₹6,560 crore.

Important Dates

The IPO opens for subscriptions on September 9, 2024. The price range will be announced on September 3. Bidding will be available from September 9 to September 11. Anchor investors can apply starting September 6.

Share Allocation

The company reserves up to 50% of the shares for Qualified Institutional Buyers (QIBs) and may allocate up to 60% to anchor investors. It will allocate at least 15% of the shares to non-institutional investors (NII) and 35% to retail investors.

Book-Running Managers and Registrar

Key book runners include Kotak Mahindra Capital, Bofa Securities, Axis Capital, Goldman Sachs, SBI Capital Markets, JM Financial, and IIFL Securities. The registrar is Kfin Technologies.

Promoter Details

Bajaj Finance Limited will sell shares worth ₹3,000 crore at ₹10 each.

IPO Objectives

Funds from the IPO will be used to support future loans and cover offering costs. Listing on the stock market will enhance brand visibility.

Assets Under Management (AUM)

As of June 2024, the company’s AUM stands at ₹97,071.33 crore, an increase from ₹74,124.26 crore the previous year.

Use of Funds

The company will utilize the IPO funds during the 2024-25 financial year based on its business plan, market conditions, and other factors.

Company Overview

Established in 2008 and fully owned by Bajaj Finance, Bajaj Housing Finance offers financial products for buying and renovating homes and commercial properties. Their services include home loans, loans against property, rent concessions, and developer finance.

Conclusion

Before you apply for the Bajaj Housing Finance IPO on September 9, 2024, make sure to review the Red Herring Prospectus thoroughly. Focus on the IPO’s valuation, offer structure, and dates. Understand the allocation details, book-running managers, and registrar. Check the promoter’s stake, IPO objectives, and fund utilization plans. Lastly, get to know the company’s background and its assets. Being informed will help you make a better investment choice.

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