Bajaj Finance arm Bajaj Housing Finance is targeting a valuation of between Rs 56,000 crore and Rs 59,000 crore for its initial public offering, multiple industry executives familiar with the development said. The IPO will mark the return of the Bajaj Group to the public markets after several years.
In June, Bajaj Housing Finance filed draft papers with SEBI for a Rs 7,000 crore IPO, including new shares worth Rs 4,000 crore and a Rs 3,000 crore offer for sale by its parent. The market regulator gave its nod to the IPO earlier this month.
The size of the issue is likely to be trimmed to between Rs 6,300 crore and Rs 6,600 crore. A third person confirmed the same. At the end of day's trade on August 14, the market cap of Bajaj Finance and Bajaj Finserv was around Rs 4 lakh crore and Rs 2.46 lakh crore respectively.
Kotak Mahindra Capital, BofA Securities, Axis Capital, JM Financial Ltd, IIFL Securities, Goldman Sachs and SBI Capital Markets are the book-running lead managers. Cyril Amarchand Mangaldas is the legal advisor to the housing financier.
The move by Bajaj Housing Finance is in line with RBI's mandatory requirement for "upper layer" NBFCs to list within three years of being notified i.e September 2025.
On September 30, 2022, the RBI announced the list of 16 NBFCs in the Upper Layer under Scale Based Regulation for NBFCs. The framework categorised NBFCs in Base Layer (NBFC-BL), Middle Layer (NBFC-ML), Upper Layer (NBFC-UL) and Top Layer (NBFC-TL). It specified that Upper Layer shall comprise of those NBFCs which are specifically identified by the Reserve Bank based on a set of parameters and scoring methodology.
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