According to an exchange announcement on June 6, Bajaj Housing Finance, a subsidiary of parent company Bajaj Finance, has approved an initial public offering that includes an offer to sell equity shares subject to market circumstances and a fresh issue of equity shares of up to Rs 4,000 crore. According to individuals who spoke with a credible source, the draft red herring prospectus would soon be submitted to market regulator SEBI.
The Bajaj Group is back on the public market after a long hiatus thanks to the home financier's IPO, which complies with RBI regulations requiring "upper layer" NBFCs to list within three years of notification.
Two recent market launches in the area are India Shelter Finance, supported by Westbridge, and Aadhar Housing Finance, backed by Blackstone. Both companies' stocks have increased by 5.10 and 5.62 percent, respectively.
Rules governing NBFCs in the Higher Stratum
The list of 16 NBFCs in the Upper Layer under the Scale Based Regulation for NBFCs was released by the RBI on September 30, 2022. Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL), and Top Layer (NBFC-TL) were the categories used by the framework to group NBFCs. According to the defined characteristics and grading system, the Reserve Bank will explicitly identify the NBFCs that make up the Upper Layer. Tata Sons, HDB Financial Services, Tata Capital Financial Services, Aditya Birla Finance, and Shanghvi Finance were among the other companies on the Upper Layer list in addition to Bajaj Housing Finance.
Examining Bajaj Housing Finance in Further Detail
By September 2025, Bajaj Housing Finance must list in accordance with the RBI's existing regulatory timeframe. According to PhillipCapital's prediction last month, Bajaj Housing Finance is slated to make its market debut in September 2025, with a listing price of between Rs 550 and Rs 570 per share. Because of the brokerage's concentration on salaried home loans, steady expense ratio, low credit prices, and strong return ratios, the company benefits from it.
On its website, the company describes itself as a diversified NBFC serving over 76.5 million consumers nationwide. Bajaj Housing Finance, a Pune-based company, provides financing for the acquisition and refurbishment of residential and commercial properties to both individuals and corporations.
In addition, it offers operating cash for corporate development as well as loans secured by property for personal or professional requirements. In addition, the firm provides high-net-worth people and developers with lease rental savings, as well as financing for developers building residential and commercial buildings.
Bajaj Housing Finance managed assets of Rs 85,929 crore at the end of the nine months that ended on December 31, a 31% rise from the same period the previous year. While net profit climbed by 41% to Rs 1,350 crore, disbursements too surged by 31% at Rs 25,308 crore.
