Bajaj Finance and Bajaj Finserv Stocks Surge on Upcoming Bajaj Housing Finance IPO Announcement

Shares of Bajaj Finance and Bajaj Finserv soared as much as 5% on September 2 after Bajaj Housing Finance, a subsidiary of Bajaj Finance, announced the opening date for its eagerly awaited ₹6,500 crore Initial Public Offering (IPO). The public offering will begin next Monday, September 9, giving a fresh boost to the parent companies' stock performance.

Bajaj Finserv shares jumped 4.43% to reach ₹1,862 per share on the National Stock Exchange (NSE), extending a three-day gain streak that has seen the stock rise over 8% during this period. Meanwhile, Bajaj Finance shares also experienced a notable uptick, climbing 3.32% to an intraday high of ₹7,439.4 per share on the NSE. This marks a six-day rally for Bajaj Finance, which has surged 9.73% over the period.

The IPO includes a special quota for shareholders of Bajaj Finserv and Bajaj Finance, who are classified as 'promoters' of Bajaj Housing Finance. Bajaj Finance holds a 100% stake in Bajaj Housing Finance, while Bajaj Finserv owns 51.34% of Bajaj Finance.

The IPO will kick off with anchor investor bidding on September 6 and conclude on September 11. The offering comprises a fresh issue of equity shares worth ₹3,560 crore and an offer for sale (OFS) of ₹3,000 crore by Bajaj Finance, the parent company. The proceeds from the fresh issue will be utilized to bolster the capital base of Bajaj Housing Finance to meet future capital needs.

This IPO is in response to the Reserve Bank of India's (RBI) directives requiring upper-layer non-banking financial companies (NBFCs) to be listed on stock exchanges by September 2025. Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015, offers a range of financial solutions, including home loans, loans against property, lease rental discounting, and developer financing.

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The housing finance company has been classified by the RBI as an "upper layer" NBFC in India, underscoring its significant role in the sector. In the fiscal year 2023-24, Bajaj Housing Finance recorded a net profit of ₹1,731 crore, reflecting a 38% increase from ₹1,258 crore in FY23.

Earlier this month, the Securities and Exchange Board of India (SEBI) approved Bajaj Housing Finance's IPO proposal, paving the way for the company's first public issue.