Bajaj Housing Finance IPO Receives Board Approval to Raise ₹4,000 Cr

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Synopsis:

Bajaj Housing Finance approves IPO worth ₹4,000 crore, with shares priced at ₹10 each. RBI mandates listing for upper-layer NBFCs with assets over ₹50,000 crore. The housing finance company's assets surged 32% to ₹91,370 crore in FY24.

Bajaj Housing Finance IPO News

The board of Bajaj Housing Finance, a subsidiary of Bajaj Finance, has given the green light for an initial public offering (IPO). The IPO includes a fresh issue of equity shares of up to ₹4,000 crore and an offer for the sale of shares, contingent upon market conditions.

IPO Details

The shares are priced at ₹10 each. However, the IPO is subject to market conditions, regulatory approvals, and other considerations.

RBI Mandate

In September 2022, the Reserve Bank of India (RBI) issued a directive requiring upper layer Non-Banking Financial Companies (NBFCs) with assets over ₹50,000 crore to be listed on stock exchanges by September 2025. Bajaj Housing Finance was part of this list, necessitating its IPO.

Regulatory Implications

Once classified as NBFC-UL (upper layer), companies face enhanced regulatory requirements for at least five years, even if they no longer meet the criteria in subsequent years.

Other Entities Affected

Besides Bajaj Housing Finance, 14 other entities, including Tata Sons, HDB Financial Services, and Tata Capital Financial Services, are listed in the upper layer.

Financial Performance

As of March 31 2024, the assets under management of Bajaj Housing Finance surged by 32% year-on-year to reach ₹91,370 crore, indicating robust growth and market presence.

In Conclusion

Bajaj Housing Finance's IPO approval aligns with regulatory mandates set by the RBI for upper-layer NBFCs. The move reflects the company's growth trajectory and market compliance, underlining its strategic positioning in the financial landscape.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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