Bajaj Housing Finance to hop onto IPO bus? Company eyeing $10 billion in valuation

Bajaj Housing Finance IPO:  Bajaj Housing Finance, a wholly owned subsidiary of Bajaj Finance, is reportedly working on an IPO. The firm is expecting a valuation of around $10 billion with the tentative size of the IPO to be around $1 billion. 

Though these are still early days, the move is line with the RBI directive for 'upper layer' NBFCs to list within three years of being notified.  BT could not independently verify the reports.

Bajaj Housing Finance has time till September 2025 to list. 

The Reserve Bank of India (RBI) had brought out a list of non-banking financial corporations (NBFC)s in the upper layer under scale-based regulation for NBFCs for the year 2023-24. Bajaj Housing Finance is on the the list.  Apart from Bajaj Housing Finance, the Upper Layer list also includes Tata Sons, HDB Financial Services, Tata Capital Financial Services, Aditya Birla Finance and Shanghvi Finance.

As of December 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 offers finance to developers engaged in the construction of residential and commercial properties, as well as lease rental discounts for developers and high-net-worth individuals. 

It also provides loans against property for business or personal needs as well as working capital for business expansion purposes.