Bajaj Housing Finance IPO: Bajaj Finance arm files draft papers with SEBI for ₹7,000 crore issue; All You Need To Know
Bajaj Finance Limited and Bajaj Finserv Limited, filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering last week on June 7. Bajaj Housing Finance is a non-deposit housing finance company that has been involved in mortgage lending from fiscal 2018.The public offering comprises a fresh share issuance at ₹4,000 crore.
According to the draft red herring prospectus (DRHP), parent company Bajaj Finance Ltd would sell shares worth an additional ₹3,000 crore through an offer for sale.Also Read: Bajaj Housing Finance files DRHP with SEBI to raise ₹7,000 crore via IPO; Details hereThe firm aims to use the net proceeds from the fresh issue to increase its capital base in order to fulfill the company's future business requirements for onward lending. Furthermore, the firm aims to reap the benefits of listing its equity shares on stock exchanges, such as increased brand recognition and the establishment of a public market for its equity shares in India.
Furthermore, a portion of the proceeds from the Fresh Issue will be utilised to cover offer expenses.The public offer includes a reservation of equity shares for subscription by eligible workers, as well as a reserve with a face value of ₹10 each for subscription by Eligible owners of the Promoters, including persons and HUFs who are the Promoters' public equity owners.In September 2022, the Reserve Bank of India (RBI) published a list of upper-layer NBFCs, or enterprises with assets under control of ₹50,000 crores. According to RBI criteria, Bajaj Housing Finance, which was on the list, was slated to be listed on the bourses in September 2025.Also Read: Bajaj Housing Finance IPO: Bajaj Finance to offload
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