According to some media sources, Bajaj Housing Finance has submitted its draft red herring prospectus (DRHP) to capital markets regulator Sebi in order to conduct an IPO at a cost of Rs 7,000 crore. In addition to its parent company Bajaj Finance offloading shares valued at Rs 3,000 crore through an offer-for-sale (OFS) in the primary stake sale, the issue will feature a new share sale worth Rs 4,000 crore.
The net proceeds from the new offering will be used by Bajaj Housing to increase its capital base in order to fulfill its future needs. A part of the new issue's proceeds will be used to general company objectives and to cover offer fees. The company's selling stockholders will get the funds from OFS.
The book-running lead managers include Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities. The problem registrar was KFin Technologies. The BSE and NSE will list Bajaj Housing shares.
The sale of shares valued at Rs 3,000 crore in Bajaj Housing Finance's Initial Public Offering was approved by the board of Bajaj Finance on June 6. The business will make the price range for the offering and other significant IPO-related dates public in due course.
Bajaj Finserv has a 51.34 percent stake in Bajaj Finance, which is wholly controlled by Bajaj Housing Finance. Since September 2015, the lender has been registered with the National Housing Bank as a non-deposit-taking home financing firm. It provides financing options for buying and remodeling both residential and commercial buildings.
The housing lender reported a 38% increase in net profit to Rs 1,731 crore for the fiscal year 2023–24 from Rs 1,258 crore the year before. As of March 31, 2024, the company's share of house loans to total assets under management (AUM) was 57.8%, a decrease from 61.7 percent the previous year.
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