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Bajaj Housing Finance to Raise Rs 7,000 Crores: Details filed in DHRP with SEBI

The funds raised will strengthen the company's capital base and support its future lending activities.

Bajaj Housing Finance plans to raise Rs 7,000 crore through its upcoming public issue.

The public issue, amounting to Rs 7,000 crore, includes a fresh issue of equity shares of up to Rs 4,000 crore and an offer for sale (OFS) of up to Rs 3,000 crore by the selling shareholder, Bajaj Finance Limited. The face value of each equity share is Rs 10.

According to the draft of the red herring prospectus (DRHP), the parent company, Bajaj Finance, will offload shares of its housing finance arm via public issue.

The funds raised will strengthen the company’s capital base and support its future lending activities.

Bajaj Housing Finance, a mortgage lending company, must have its shares listed on stock exchanges by September 2025 to comply with RBI regulations.

According to the Reserve Bank of India’s regulations, large non-banking financial companies in India must be listed on stock exchanges by September 2025.

In September 2022, the RBI released a list of top-tier NBFCs with assets under management of Rs 50,000 crore that need to be listed.

The RBI has identified Bajaj Housing Finance as one of the large NBFCs that must be listed.

The company has appointed several leading financial institutions to manage the public issue, including Kotak Mahindra Capital, BofA Securities India, Axis Capital, Goldman Sachs, SBI Capital Markets, JM Financial, and IIFL Securities.

Bajaj Housing Finance, a subsidiary of Bajaj Finance, offers financial solutions for purchasing and renovating properties.

The company demonstrated strong financial performance in the 2023-24 fiscal year, with a 38% growth in net profit.

It offers a range of mortgage products and has received the highest credit ratings from CRISIL and India Ratings.

It holds the AAA/Stable rating for its long-term debt program and A1+ for its short-term debt program from both rating agencies.

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