Bajaj Housing Finance on Friday said it had raised Rs 1,758 crore from anchor investors, days before the initial opening of its share sale for public subscription.
Government of Singapore, Abu Dhabi Investment Authority, Fidelity, Morgan Stanley, Nomura, Goldman Sachs, JP Morgan India Investment Trust Plc, OSE Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), Kotak Mahindra Key investors include MF, SBI MF, UTI MF and Nippon India MF.
According to a circular posted on the BSE website, the company has allotted 25.11 million equity shares to 104 funds at Rs 70 each, which is also the upper limit of the price band. This brings the transaction size to Rs 1,758 crore.
The much-awaited initial share sale of Rs 6,560 crore will open for public subscription on September 9 and conclude on September 11.
The price range has been fixed between Rs 66 and Rs 70 per share for the public issue.
The proposal IPO includes a fresh issue of equity shares of up to Rs 3,560 crore and an offer for sale (OFS) of equity shares worth Rs 3,000 crore by parent Bajaj Finance.
The share sale is being carried out to comply with the Reserve Bank of India’s policy ( Reserve Bank of India ) regulations requiring top-tier non-bank financial companies to be listed on stock exchanges by September 2025.
The proceeds from the new issue will be used to increase the company’s capital base to meet future capital needs.
Bajaj Housing Finance is a non-deposit taking housing finance company registered with the National Housing Bank since September 2015. It offers financial solutions for the purchase and renovation of residential and commercial properties.
It has been identified and categorized as a “top layer” NBFC by the Reserve Bank of India in India and its comprehensive mortgage products include home loans, home equity loans, rental discounts and developer financing.
For the entire fiscal year 2023-24, the housing lender posted a net profit of Rs 1,731 crore, marking a growth of 38 per cent from Rs 1,258 crore in FY23.
Aadhar Housing Finance and India Shelter Finance are two housing finance companies that have listed on the stock exchanges in recent months.
In June, Bajaj Housing Finance filed preliminary documents with Sebi for a Rs 7,000 crore deal. IPO comprising fresh shares worth Rs 4,000 crore and an OFS component of Rs 3,000 crore from its parent. The market regulator gave its approval to the company’s first public issue earlier this month.
box Mahindra Capital Company Ltd, BofA Securities India Ltd, OSE Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd and JM Financial Ltd are the lead managers that will manage the public issue of the company.
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