Bajaj Housing Finance Ltd., a wholly owned subsidiary of Bajaj Finance Ltd., is preparing for an initial public offering, according to people who are aware of the matter. The discussions are still in their initial stages and several investment banks are pitching for the mandate, the people quoted above said on the condition of anonymity.
Based on current discussions, Bajaj Housing Finance is expecting a valuation of around $10 billion. The tentative size of the IPO is expected to be around $1 billion, the people added. If everything goes as planned, the mortgage lender may be listed on the bourses by the end of 2024 or early 2025.
The plan for preparing for an IPO is in line with the Reserve Bank of India's compliance requirements with its scale-based regulations. According to the guidelines, upper-layer non-banking financial companies have to list on the exchanges within three years of being notified.
Media reports previously mentioned that Bajaj Housing Finance also sought more time from the Reserve Bank of India to list on the bourses. This is reportedly because the company is relatively young and a company needs at least a 10-year track record to be listed.
As of Dec. 31, Bajaj Housing Finance's assets under management were up 31% year-on-year at Rs 85,929 crore. Its disbursements stood at Rs 10,727 crore, up 44% year-on-year.
The lender's net interest income rose 17% year-on-year to Rs 645 crore in Q3 FY24. It's net total income also grew 17% to Rs 746 crore, as compared with a year ago.
PAT was up 31% year-on-year to Rs 437 crore, as against Rs 334 crore in Q3 FY23.
The company is present across 186 locations and its portfolio comprises home loans, loans against property, lease rental discounting, etc., with home loans having the biggest share at 56%.
