Shares of Bajaj Finserv and Bajaj Finance rose on Monday ahead of the IPO announcement of mortgage lending arm Bajaj Housing Finance’s Rs 7,000-crore offering, which is expected to hit the market during the first half of September. The IPO will include a special quota for shareholders of Bajaj Finserv and Bajaj Finance, both of whom are classified as ‘promoters’. Shares of Bajaj Finserv rose 2.84 per cent, while Bajaj Finance gained 0.6 per cent. Bajaj Finance has a 100 per cent stake in Bajaj Housing, while Bajaj Finserv holds 51.34 per cent in Bajaj Finance. Bajaj Housing’s IPO will comprise Rs 3,000 crore worth of share sales by Bajaj Finance and a fresh fund raise of Rs 4,000 crore.
The fresh funds will be raised to strengthen its capital base to meet future lending requirements.
The record date for determining shareholders eligible to apply under the special quota could be announced soon if the company finalises its IPO dates. “While the company is yet to announce the IPO pricing, the market is abuzz that the pricing could be around Rs 80. Currently, shares are changing hands in the grey market at around Rs 120. As a result, many IPO applicants will try to apply through the shareholder quota to improve their allotment chances,” said an investment banker.
As per rules, anyone who holds even one share of either Bajaj Finserv or Bajaj Finance as of the record date can apply in the shareholder quota.
Bajaj Housing Finance, an upper layer non-banking financial company (NBFC), offers home loans, loans against property, lease rental discounting, and developer financing. As of March 2024, the company’s assets under management (AUM) stood at Rs 9.14 trillion, growing at an annualised rate of 30.9 per cent between FY22 and FY24.
Its average ticket size for home loans is Rs 46 lakh, with an average loan-to-value ratio of 70.5 per cent as of March 31, 2024.
First Published: Aug 26 2024 | 4:59 PM IST
