Mumbai (Maharashtra) [India], June 8 : Bajaj Housing Finance Limited (BHFL), an arm of Bajaj Finance has submitted its draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise funds in the public market. The company is aiming to raise Rs 7,000 crore in an initial share sale.
As per the DRHP document, the initial public offering will be a combination of a fresh issue of equity shares of up to Rs 4,000 crore and an offer for sale (OFS) of equity shares worth Rs 3,000 crore by Bajaj Finance.
The Mumbai-based company said it will use the raised investments to enhance its capital base to meet future needs of the company.
Bajaj Finance is offering a sale of around Rs 3,000 crore in its housing finance arm, according to the company. Bajaj Housing Finance is fully owned by Bajaj Finance, and Bajaj Finserve holds a 51.34 per cent shareholding in Bajaj Finance.
The company's percentage of home loans to total assets under management (AUM) as of March 31, 2024, was 57.8 per cent, down from 61.7 per cent from last year.
The IPO includes a reservation for subscription by certain eligible shareholders of Bajaj Finance Limited and Bajaj Finserv Limited, and certain eligible employees of BHFL, Bajaj Finance Limited, and Bajaj Finserv Limited, as per the company's statement.
BHFL offers a full range of mortgage products, such as home loans, loans against property, and lease rental discounts. It also offers construction finance and inventory finance to developers.
BHFL has posted a net profit of Rs 1,731 crore for 2023-24, up 38 per cent year-on-year (YoY). The capital adequacy ratio (including Tier II capital) was 21.28 per cent as of March 31, 2024.
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