Bajaj Housing Finance board approves Rs 4,000-crore IPO proposal

Bajaj Housing Finance's board on Thursday approved a proposal to raise Rs 4,000 crore though an initial public offer (IPO). The IPO will an offer for sale (OFS) of Rs 3,000 crore as well as fresh issuance of shares. 

The IPO will be subject to market conditions, approvals and regulatory clearances, Bajaj Housing Finance said. 

Bajaj Housing Finance, an upper layer non-banking financial company (NBFC), is required to list its shares by 2025, as per RBI rules. 

The company has an average loan ticket size of Rs 50 lakh with 90 per cent of its borrowers being salaried individuals. 

About 40 per cent of Bajaj Finance's customers borrow from Bajaj Housing Finance. 

The housing finance category forms about 30 per cent of Bajaj Finance's assets under management (AUM).

According to Zee Business research, Bajaj Housing Finance is estimated to take its balance sheet size beyond Rs 1 lakh crore in three years. 

The stock is estimated to hit the Street at a listing price of Rs 550-570 per share, according Zee Business analysts, who peg the NBFC's price-to-book-value ratio at around 2.6. 

Bajaj Housing Finance is a subsidiary of Pune-headquartered non-banking financial company Bajaj Finance.