Bajaj group returns to public market with Rs 4,000 Crore IPO for Bajaj Housing Finance

Bajaj Housing Finance, a subsidiary of Bajaj Finance, has announced its return to the public market with a significant initial public offering (IPO). The proposed IPO includes a fresh issue of equity shares worth up to Rs 4,000 crore and an offer for sale of equity shares, subject to market conditions. This move marks the Bajaj Group’s re-entry into the public market after several years.

Key details of the Bajaj Housing Finance IPO

• IPO structure: Fresh issue of equity shares up to Rs 4,000 crore and an offer for sale of equity shares.
• Regulatory compliance: The IPO is in response to RBI’s regulatory norms requiring “upper layer” NBFCs to list within three years of notification.
• Timeline: Bajaj Housing Finance must list by September 2025 as per RBI guidelines.

Financial performance and Market position

Bajaj Housing Finance is a diversified non-banking financial company (NBFC) catering to over 76.5 million customers across India. The company offers a range of financial services, including:

• Home and commercial finance: Loans for the purchase and renovation of homes or commercial spaces.
• Loans against property: Financing for business or personal needs and working capital for business expansion.
• Developer finance: Loans for developers in residential and commercial property construction, along with lease rental discounts for developers and high-net-worth individuals.

Recent financial highlights

For the nine months ending December 31, Bajaj Housing Finance reported impressive growth:

• Assets under management (AUM): Rs 85,929 crore, a 31% increase year-over-year.
• Disbursements: Rs 25,308 crore, a 31% rise from the previous year.
• Net profit: Rs 1,350 crore, marking a 41% increase.

Bajaj Housing Finance’s upcoming IPO marks a significant milestone for the Bajaj Group, re-establishing its presence in the public market. With strong financials and a strategic focus on growth, Bajaj Housing Finance is poised to attract considerable investor interest, reinforcing its market position as a leading NBFC in India.

The IPO is not only a compliance measure but also a strategic move to strengthen Bajaj Housing Finance’s market presence. The company’s focus on diversified financial services and its robust financial performance positions it well for future growth. The brokerage firms are optimistic about Bajaj Housing Finance due to its focus on salaried home loans, a stable expense ratio, and minimal credit costs, which contribute to robust return ratios.