The proposed initial public offering (IPO) of Bajaj home financing, a fully owned home financing subsidiary of Bajaj Finance, has been authorized by the Securities and Exchange Board of India (SEBI). For a ₹7,000 crore IPO, Bajaj Housing Finance submitted its draft red herring prospectus (DRHP) to SEBI in June.
Both a new issue and an offer-for-sale (OFS) will be included in the IPO. Up to ₹4,000 crore can be allocated for new issues, and up to ₹3,000 crore can be used for offer-for-sale transactions (OFS). The sole promoter offering OFS shares for sale is Bajaj Finance. The capital basis of Bajaj Housing Finance will be strengthened with the money raised from the new offering. It enables the firm to fulfill upcoming demands for more funding.
The purpose of the share sale is to comply with Reserve Bank of India (RBI) regulations, which mandate that by September 2025, upper-layer non-banking financial entities must be listed on stock markets. The goal of this regulatory mandate is to improve financial industry governance and transparency. Financing is available for the acquisition and remodeling of both residential and commercial real estate through Bajaj Housing Finance Limited (BHFL). Pune is home to its headquarters.
The organization also provides operating finance for corporate development, loans backed by real estate, and developer financing. The firm has been awarded a short-term debt rating of A1+ and a long-term debt rating of AAA/Stable by CRISIL and India Ratings.
Bajaj Housing Finance had a ₹483 crore net profit in the first quarter of FY25, a 5% increase over the previous year. The company’s assets under management reached ₹97,071 crore by the end of June. The portfolio breakdown shows that secured loans account for 10%, house loans for 57%, dealer financing for 11%, and lease rental discounting for 20%. During the quarter, the lender distributed ₹12,004 crore across a network of 174 sites. Up to June 30, the ratio of net non-performing assets (NPAs) was 0.11%, while the ratio of gross non-performing assets (NPAs) was 0.28%. Compared to the previous year’s 0.23% and 0.08% ratios, these figures show a little rise.
