Bajaj Finance rallies 5% after NBFC floats subsidiary's IPO plans to raise ₹3,000 crore; Should you buy or sell?
Bajaj Finance rallied over five per cent on Friday, June 7, after the non-banking financial company (NBFC) approved the initial public offering (IPO) of its wholly-owned subsidiary Bajaj Housing Finance. The NBFC will offload shares of its housing finance arm, for ₹3,000 crore in the upcoming public issue.“This is to inform you that the Board of Directors of the company at its meeting held today.
i.e. 6 June 2024 has approved an initial public offering of equity shares of ₹10 each of the company (‘equity shares’)," said Bajaj Finance in a statement on Thursday.
The IPO would be subject to market conditions, approvals and regulatory clearances.In September 2022, the Reserve Bank of India (RBI) released a list of upper-layer NBFCs, or businesses with assets under management of ₹50,000 crore. According to RBI guidelines, Bajaj Housing Finance, which was on the list, was supposed to be listed on the bourses by September 2025.Also Read: Bajaj Housing Finance IPO: Bajaj Finance to offload ₹3,000 crore worth of shares via OFSIn the last one week, shares of Bajaj Finance have given 8.69 per cent returns to investors and 13.95 per cent returns in the past three months.
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