Shares of Bajaj Finserv and Bajaj Finance rose on Monday ahead of the announcement of mortgage lender Bajaj Housing Finance’s Rs 7,000 crore initial public offering (IPO).
The IPO is expected to Effectual the market during the first half of September.
The IPO will have a special quota for shareholders of Bajaj Finserv and Bajaj Finance, both of which are classified as ‘promoters’.
Shares of Bajaj Finserv rose 2.84 percent, while Bajaj Finance gained 0.6 percent. Bajaj Finance holds 100 percent stake in Bajaj Housing, while Bajaj Finserv holds 51.34 percent stake in Bajaj Finance. Bajaj Housing’s IPO will involve a share sale of Rs 3,000 crore by Bajaj Finance and a fresh fund raising of Rs 4,000 crore.
The fresh funds will be raised to boost its capital base for future borrowing requirements. The record date for determining shareholders applying under the special quota may fall soon if the company announces the dates of its IPO.
“Although the company has not announced the IPO pricing yet, the market buzz is that it could be around Rs 80. Currently, the shares are changing hands at around Rs 120 in the gray market. An investment banker said that As a result, a lot of IPO applicants will try to apply through the shareholder quota to improve their allotment chances,”.
Bajaj Housing Finance offers home loans, loan 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 annual 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.
