Founded in 2008, Bajaj Housing Finance being India’s second-largest housing finance company and a wholly owned subsidiary of Bajaj Finance plans to raise a total of Rs 6,560 crore from its primary stake sale comprising a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore from its promoter Bajaj Finance Ltd. Bajaj Housing Finance offers customised financial solutions to individuals and corporates for the purchase and renovation of homes and commercial spaces. The company offers home loans, mortgage loans, among other services.

This would be among one of the largest IPOs of the year, along with Ola Electric Mobility, and Bharti Hexacom, which have already made their debuts on the bourses.

Bajaj Housing Finance is offering a fresh issue of 937,142,858 shares worth around Rs 6,560 crore, as well as an offer for sale with Bajaj Finance, the promoter of the company, offloading up to 508,571,429 shares with a face value of Rs 10 apiece, aggregating up to Rs 3,560 crore

Bajaj Housing Finance has reserved shares worth Rs 200 crore for the eligible employees of the company, while shares worth Rs 500 crore shall be reserved for eligible shareholders of Bajaj Finance and Bajaj Finserv. Of the net offer, 50 per cent shares will be allocated for qualified institutional bidders, while NII and retail investors will get 15 per cent and 35 per cent of the net offer.

Bajaj Housing Finance have already started commanding a strong premium in the grey markets ahead of its opening, scheduled for Monday, September 9, 2024. Sources tracking grey market activities reveal that Bajaj Housing Finance shares are trading at a grey market premium (GMP) of Rs 56 or 80 per cent, reflecting favourable market sentiment for the public issue of Bajaj Finance’s subsidiary.

The Bajaj Housing Finance IPO has not less than 50 per cent of the shares in the public issue reserved for qualified institutional buyers (QIBs), not less than 15% for non-institutional institutional investors (NIIs), and not less than 35% for retail investors. The lot size of the Bajaj Housing Finance IPO is 214 equity shares and in multiples of 214 equity shares thereafter.

Allotment of shares of Bajaj Housing Finance IPO will be finalised on September 12 and the company will start refunds on September 13, while after the refund, the shares will be credited to the demat account of the allottees on the same day.

As of March 31, 2024, Bajaj Housing Finance had 3,08,693 active customers, of which 81.7 percent were home loan customers. It has a network of 215 branches in 174 locations across 20 states and three union territories.

The total revenue from operations for Bajaj Housing Finance stood at Rs 22,086.5 crore for the quarter ended June 30, 2024. It stood at Rs 76,173.1 crore for FY24 and Rs 56,647.3 crore for FY23.

Bajaj Housing Finance’s profit after tax for the period ended June 30, 2024, was reported at Rs 4,826.1 crore, while it stood at Rs 17,312.2 crore for FY24, and Rs 12,578.3 crore for FY23. The company’s total comprehensive income for the period ended June 30, 2024, was reported at Rs 4,832.4 crore, while for FY24 it stood at Rs 17,303.1 crore, and Rs 12,619.5 crore for FY23.

Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book running lead managers of the Bajaj Housing Finance IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE likely on September 16, Monday.