Bajaj Housing Finance board approves IPO to raise Rs 4,000 crore

The Bajaj Housing Finance board has approved an initial public offering (IPO) with a fresh issue of shares to raise up to Rs 4,000 crore, the company said on Thursday.

The IPO would include a sale of shares by existing shareholders.

Bajaj Finance Housing is a 100 per cent subsidiary of Bajaj Finance.

Bajaj Finserv holds 51.34 per cent in Bajaj Finance.

The mortgage financier, which manages assets worth Rs 91,370 crore as of March 31, 2024, is an upper-layer non-banking financial company (NBFC) in terms of the Reserve Bank of India’s (RBI’s) scale-based regulation guidelines.

In September 2022, the banking regulator released a list of 15 NBFCs that are in the upper layer as their loan book was above Rs 50,000 crore.

RBI norms mandated the company to list its shares on the exchanges by September 2025.

The housing finance company reported a net profit of Rs 1,731 crore for 2023-24, up 38 per cent year-on-year. The capital adequacy ratio (including Tier II capital) was 21.28 per cent as of March 31, 2024.

The home loan company offers a full range of mortgage products, such as home loans, loans against property, and lease rental discounts, to salaried and self-employed customers. It also offers construction finance and inventory finance to developers.

Home loans are 57.8 per cent of the total assets under management as of March 31, 2024, compared to 61.7 per cent a year ago.

For salaried customers, the home loans have an average ticket size of Rs 46 lakh. Eighty-eight per cent of its customers are salaried. It has a presence in 174 locations as of March 31, 2024.

In the loan against property segment, it offers loans to mass affluent and self-employed customers for an average ticket size of Rs 57 lakh.