Bajaj Housing Finance IPO: 10 key things to know about RHP before subscription opens on September 9

Bajaj Housing Finance Limited IPOIPO) will open for subscription on September 9, 2024. The non-banking financial company (NBFC) seeks to elevate ₹6,560 crore of public issue.

Bajaj Home Financing Ltd. is owned by the Reserve Bank of India (Reserve Bank of India) “Top tier” NBFCs. To comply with RBI norms, NBFCs in this tier must list on stock exchanges by September 2025.

Here are the key aspects to watch out for in Bajaj Housing Finance’s IPO:

1. IPO Valuation: The non-bank lender has priced the IPO at ₹6.56 billion rupees, with a face value of ₹10 per share of capital. company is offering a new issue and an Offer for Sale (OFS) issue on the public listing.

2. Details of the IPO structure: Bajaj Housing Finance plans to raise funds ₹3,560 crore of fresh issue of shares at a face value of ₹10 per share and ₹3,000 crore from its Offer for Sale (OFS) issue at a face value of ₹10 per share, according to the Red Herring Prospectus (RHP) company’s prospectus. This brings the total worth from the problem to ₹6.56 billion rupees.

3. IPO dates: Non-bank lender’s IPO to open for subscription on Monday, September 9. The Motherboard IPO price band will be announced on Tuesday, September 3. The issue will have a three-day bidding window and will close on Wednesday, September 11. The IPO will open for its anchor subscription round on Friday, September 6, according to the filing.

4. IPO Allocation Details: Bajaj Housing Finance plans assign No more than 50 percent of the net offering to qualified institutional buyers (QIBs) on a pro rata basis. In consultation with the underwriters, the Company may allocate up to 60 percent of the QIB portion to qualified institutional buyers. anchor The company has planned to offer not less than 15 percent of the net offering to non-institutional investors (NII) and not less than 35 percent to retail investors, according to the RHP filing.

5. Persons in charge of book management and Registrar: The coordinators of the public issue are Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited and IIFL Securities Ltd. Kfin Technologies Limited is the registrar for the public issue.

6. Promoter selling participation: Bajaj Housing Finance promoter, Bajaj Finance Limited, are you losing equity shares worth? ₹3,000 crores at a face value of ₹10 per share.

7. Objective of the IPO: The non-bank lender goals use the proceeds from the public offering to strengthen its capital base for future lending activities and to cover expenses related to the offering. The IPO listing will help the company benefit from brand recognition and public presence as a listed entity on the secondary market.

8. Details of investment in IPO funds: The IPO proceeds will be earmarked for use during the financial year 2024-25. According to the filing, the fund will be allocated based on the company’s current revenues. business plan, management estimates, prevailing market conditions and other business and technical factors.

9. Total assets under management (AUM): From June 2024, the company AUM stood on ₹97,071.33 crores, compared to ₹74,124.26 crore in the same period last year.

10. Company details: Bajaj Housing Finance, a non-banking financial company, was established in 2008 and is a wholly owned subsidiary of Bajaj Finance. The NBFC is part of the Bajaj Group and offers customized financial solutions to individuals and businesses for the purchase and renovation of homes and commercial spaces. The company’s comprehensive housing finance products cover home loans, property-secured loans, rental concessions and developer financing.