Bajaj Housing Finance Ltd, a wholly owned subsidiary of Bajaj Finance Ltd, plans to raise Rs 6,560 crore through its initial public offering, which will open for subscription on September 9.
The IPO comprises a fresh issue of Rs 3,560 crore and an aggregate offer for sale of Rs 3,000 crore by promoter Bajaj Finance. The face value of the shares is Rs 10 per share.
The company has invited bids from anchor investors on September 6 and the IPO issue is scheduled to close on September 11.
The company intends to use the net proceeds to increase its capital base to meet its operational requirements for future financings.
The shares will be sold to qualified institutional and retail investors. bInvestors, non-institutional investors, eligible employees, eligible shareholders. The employee retention portion may not exceed 5% of the paid-in capital after the offer.
Anchor investors can receive up to 60% of the QIB portion at their discretion, while domestic mutual funds will receive one-third of this allocation. The allocation will be split among non-institutional bidders, with one-third reserved for investors applying for shares worth between Rs 2 lakh and Rs 1 million, and two-thirds for investors applying for shares worth more than Rs 1 million.
NDTV Profit reported in March that Bajaj Housing Finance was looking at a valuation of around $8-10 billion. The preliminary size of the IPO is expected to be around $1 billion.
As such, the company was planning to file its draft IPO prospectus in June and prepare for its marketing activities and roadshow in August.
For the fourth quarter, Bajaj Housing Finance reported profit of Rs 3,810 crore, up 26 percent from a year ago. Net interest income, or core income, rose 11 percent year-on-year to Rs 6,290 crore.
The company’s assets under management grew 32% YoY to Rs 91,370 crore. Total net income grew 14% YoY to Rs 71,700 crore.
The total approval amount was Rs 1,941.7 billion, up 19% from the previous year, while the expenditure amounted to Rs 1,139.3 billion, up 26% from the previous year.
