Bajaj Housing Finance Limited files DRHP with SEBI for an IPO

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Bajaj Housing Finance Limited (BHFL), part of the Bajaj Group (with Bajaj Finance Limited and Bajaj Finserv Limited as promoters), has filed Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). BHFL is a non-deposit taking Housing Finance Company (“HFC”), registered with the National Housing Bank (“NHB”) since September 24, 2015, and engaged in mortgage lending since Fiscal 2018.

The Public Offer aggregating up to ₹7,000 crore comprises a fresh issue of equity shares of up to ₹4,000 crore and an offer for sale (OFS) of up to ₹3,000 crore by the “Selling Shareholder” (The “Offer for Sale”) with face value of ₹10 each equity share by Bajaj Finance Limited (The “Promoter Selling Shareholder”).

The Public Offer Includes a reservation of Equity Shares for subscription by Eligible Employees (“Employee Reservation Portion”) and a reservation Equity Shares of Face Value of ₹10 each for subscription by Eligible Shareholders of promoters (“Shareholders Reservation Portion”) including individuals and HUFs who are public equity shareholders of the Promoters.

BHFL proposes to use the net proceeds for augmenting the company’s capital base to meet future business requirements of the company towards onward lending.

This Offer is being made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations. Not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”) provided that the Company, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which at least one-third shall be available for allocation to domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders. Not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts (including UPI ID for UPI Bidders using UPI Mechanism) (as defined hereinafter) in which the Bid amount will be blocked by the SCSBs or the Sponsor Banks, as applicable, to participate in the Offer.

The Company, in consultation with the BRLMs, may consider an issue of specified securities, as may be permitted under applicable law, at its discretion, prior to filing of the Red Herring Prospectus with the RoC (“Pre-IPO Placement”).

The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges, being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”, and together with BSE, the “Stock Exchanges”).

Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited, and IIFL Securities Limited are the Book Running Lead Managers to the issue.

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