Shares of Bajaj Finance and Bajaj Finserv gained as much as 5 percent on 2nd September as the group's unit Bajaj Housing Finance set the opening date for its much-awaited Rs 6,500-crore IPO. Bajaj Housing Finance initial public offer will open for public subscription next Monday (September 9).
Bajaj Finserv share price rose 4.43 percent to Rs 1,862 per share on NSE. The stock has been gaining for the last three days, and has risen over 8 percent in the period.
Bajaj Finance shares also jumped on the buzz of upcoming group IPO. It gained to an intraday high of Rs 7,439.4 per share on the NSE, rising 3.32 percent. This stock too has been gaining for the last six days, up 9.73 percent during the period.
The IPO will have a special quota for shareholders of Bajaj Finserv and Bajaj Finance, both of whom are classified as ‘promoters’, reported Moneycontrol earlier. Bajaj Finance has a 100 percent stake in Bajaj Housing, while Bajaj Finserv holds 51.34 percent in Bajaj Finance.
The bidding for anchor investors will open for one day on September 6 for the maiden share sale of Bajaj Housing Finance; the IPO will conclude on September 11. On August 16, Moneycontrol was the first to report that Bajaj Housing Finance was targeting a valuation of Rs 56,000-59,000 for the IPO.
The upcoming initial share sale comprises a fresh issue of equity shares of up to Rs 3,560 crore and an offer for sale (OFS) of equity shares to the tune of Rs 3,000 crore by parent Bajaj Finance.
The share sale is being carried out to comply with the Reserve Bank of India's (RBI) guidelines, which mandate that upper layer non-banking financial companies (NBFCs) must be listed on stock exchanges by September 2025.
The proceeds from the fresh issue will be utilised to strengthen the company’s capital base to meet future capital needs.
Bajaj Housing Finance is a non-deposit taking housing finance company, registered with the National Housing Bank since September 2015. It provides financial solutions for buying and renovating residential and commercial properties.
The RBI has identified and classified it as an "upper layer" NBFC in India. Its wide range of mortgage products includes home loans, loans against property, lease rental discounting, and developer financing.
For the entire fiscal year 2023-24, the housing finance firm recorded a net profit of Rs 1,731 crore, reflecting a 38 per cent increase from Rs 1,258 crore in FY23.
In June, Bajaj Housing Finance submitted initial documents to Sebi for a Rs 7,000-crore IPO, consisting of fresh shares worth Rs 4,000 crore and an OFS component of Rs 3,000 crore from its parent. The market regulator gave its approval to the company’s first public issue earlier this month.
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