Bajaj Housing Finance files DRHP for Rs 7,000 cr IPO

New Delhi [India], June 14 : Bajaj Housing Finance has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI to raise Rs 7,000 crore via fresh issue and offer for sale.
According to the DRHP document, the first public offer will consist of an offer for sale (OFS) by Bajaj Finance for equity shares valued at Rs 3,000 crore, together with a new issue of equity shares up to Rs 4,000 crore. The Pune-based company stated that it will increase its capital base with the funds raised in order to meet its ongoing needs.
Bajaj Finance is offering a sale of about Rs 3,000 crore in its housing finance division.
The firm aims to use the net proceeds from the fresh issue to increase its capital base in order to fulfil the company's future business requirements for onward lending.
Bajaj Finserve owns 51.34 percent of Bajaj Finance, whereas Bajaj Housing Finance is entirely owned by Bajaj Finance. As of March 31, 2024, the company's home loan percentage to total assets under management (AUM) was 57.8 per cent, a decrease from 61.7 per cent in the previous year.
According to the company's statement, there is a reserve for participation in the IPO for specific qualified shareholders of Bajaj Finance Limited and Bajaj Finserv Limited, as well as specific eligible employees of BHFL, Bajaj Finance Limited, and Bajaj Finserv Limited.
A comprehensive array of mortgage solutions, including house loans, secured loan against property, and lease rental discounts, are provided by BHFL.
Additionally, it provides developers with inventory finance and construction finance. For 2023-24, BHFL reported a net profit of Rs 1,731 crore, a 38 per cent YoY increase.
As of March 31, 2024, the capital adequacy ratio (including Tier II capital) was 21.28 per cent.