Bajaj Housing Finance Launches ₹6,560 Crore IPO: Price Band Set at ₹66-₹70 Per Share

Bajaj Housing Finance Aims to Strengthen Capital Base with Fresh Issue of ₹3,560 Crore

Ahmedabad, Sep 5: Bajaj Housing Finance is set to launch its highly anticipated Initial Public Offering (IPO), aiming to raise ₹6,560 crore.

The offer consists of a fresh issue of ₹3,560 crore through 50.86 crore shares and an Offer for Sale (OFS) of ₹3,000 crore, encompassing 42.86 crore shares. The IPO will be open for subscription from September 9, 2024, to September 11, 2024, with shares expected to be listed on BSE and NSE on September 16, 2024.

The price band for the IPO is set between ₹66 to ₹70 per share. Retail investors can apply for a minimum lot size of 214 shares, requiring an investment of ₹14,980. For sNII (small non-institutional investors), the minimum subscription is 14 lots (2,996 shares) amounting to ₹209,720, and for bNII (big non-institutional investors), it is 67 lots (14,338 shares) totaling ₹1,003,660. The company has reserved ₹200 crore worth of shares for employees and ₹500 crore for shareholders of Bajaj Finance Limited and Bajaj Finserv Limited.

Proceeds from the fresh issue will be directed towards bolstering the company’s capital base to support future lending operations. Leading financial institutions such as Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs India, SBI Capital Markets, JM Financial, and IIFL Securities are acting as Book Running Lead Managers for the IPO.

IPO Details and Capital Augmentation Strategy: Amit Jain on Bajaj Housing Finance’s Upcoming Offering:

At a press conference in Ahmedabad, Atul Jain, Managing Director of Bajaj Housing Finance, shared insights on the company’s strategic goals. He emphasized, “This IPO will allow us to further enhance our capital base, ensuring we meet the growing demand for housing finance in the country. Our focus remains on creating sustainable, long-term value for all stakeholders.”

Amit Jain further stated, “The Anchor Investor Bidding Date is set for Friday, September 6, 2024, while the Bid/Offer will close on Wednesday, September 11, 2024. The price band for the offer is ₹66 to ₹70 per equity share, with bids starting at a minimum of 214 shares and in multiples thereafter.

For employees, we have reserved equity shares worth ₹200 crore, and shareholders of Bajaj Finance Limited and Bajaj Finserv Limited have a reservation portion of ₹500 crore. The net proceeds from this offer will be utilized to augment our capital base, ensuring we meet future business needs, particularly for onward lending.”

Niraj Adiani, Exec VP President & Chief Risk Officer and Amit Sinha, Exec VP, Home Loans from Bajaj Housing Finance were also present at the occasion.

Anchor investor bidding for the IPO will open on September 6, 2024, with the allotment date scheduled for September 12, 2024.

(Disclaimer: Investors must thoroughly study the company profile and details before investing)