Bajaj Finance arm Bajaj Housing Finance is targeting a valuation of between Rs. 56,000 crore and Rs. 59,000 crore for its initial public offering, multiple industry executives familiar with the development said. The IPO will mark the return of the Bajaj Group to the public markets after several years. Moneycontrol was the first to report the firm’s listing plans on March 27.
In June, Bajaj Housing Finance filed draft papers with SEBI for a Rs. 7,000 crore IPO, including new shares worth Rs. 4,000 crore and a Rs. 3,000 crore offer for sale by its parent. The market regulator gave its nod to the IPO earlier this month. A second person told Moneycontrol that the size of the issue is likely to be trimmed to between Rs. 6,300 crore and Rs. 6,600 crore. A third person confirmed the same.
An email query to parent Bajaj Finance remained unanswered at the time of publishing this article. At the end of day’s trade on August 14, the market cap of Bajaj Finance and Bajaj Finserv was around Rs. 4 lakh crore and Rs. 2.46 lakh crore respectively. Kotak Mahindra Capital, BofA Securities, Axis Capital, JM Financial Ltd, IIFL Securities, Goldman Sachs and SBI Capital Markets are the book-running lead managers. Cyril Amarchand Mangaldas is the legal advisor to the housing financier.
Bajaj Housing Finance – Strength and Weakness
| Strength | Weakness |
| Bajaj Housing Finance holds AUM of ₹913,704.0 million as of 2024. | Inability to recover full collateral value could adversely affect financial stability. |
| Experienced management team with over 21 years of association with the Bajaj group. | Regulatory changes could increase provisioning needs, affecting financial health. |
| Operates 215 branches across 174 locations in 20 states. | Interest rate volatility could erode Net Interest Margins, currently at 4.1%. |
A closer look at Bajaj Housing Finance and NBFC IPOs
Bajaj Housing Finance is a diversified NBFC catering to more than 76.5 million customers across the country, according to its website. Based in Pune, it offers finance to individuals as well as corporate entities for the purchase and renovation of homes or commercial spaces. For the year ended March 31, 2024, Bajaj Housing Finance had assets under management of Rs. 91,370 crore which grew by 32 percent. It will utilise the net proceeds from the fresh issue to augment its capital base to meet future business requirements. A portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
Listing of the shares on the stock exchanges will also enhance the company’s brand name and help create a public market for its equity shares in India, the firm said in its draft red herring prospectus. In May, PhillipCapital anticipated that Bajaj Housing Finance will debut on the exchanges in September 2025 with an expected listing price of Rs. 550-570 per share.
The brokerage is positive on the firm due to its emphasis on salaried home loans, stable expense ratio, and minimal credit costs, resulting in robust return ratios. Blackstone-backed Aadhar Housing Finance and Westbridge-backed India Shelter Finance are two market debuts from 2024 in the NBFC segment. In June, Mumbai-based Avanse Financial Services, which is promoted by Warburg Pincus and also backed by Kedaara Capital and IFC, filed draft papers with Sebi to raise Rs. 3,500 crore via an IPO. If the plans of Avanse fructify, it would arguably be the first-ever listing by an education-focused NBFC in India.
Bajaj Housing Finance is eyeing a valuation of ₹56,000 to ₹59,000 crore for its upcoming IPO. Originally planned at ₹7,000 crore, the issue size might be reduced to ₹6,300-₹6,600 crore. The IPO will relaunch Bajaj Group in the public markets after years. 📈💼