The IPO will comprise a fresh issue of equity shares worth up to ?35.6 billion and an offer for sale (OFS) of shares amounting to ?30 billion by its parent company, Bajaj Finance. This move is part of a regulatory requirement set by the Reserve Bank of India (RBI), which mandates that upper-layer non-banking financial companies (NBFCs) be listed on stock exchanges by September 2025.

Proceeds from the fresh issue will be utilized to bolster Bajaj Housing Finance's capital base to meet future requirements. The company, a non-deposit-taking housing finance firm registered with the National Housing Bank since 2015, offers various financial solutions for purchasing and renovating residential and commercial properties. Its product portfolio includes home loans, loans against property, lease rental discounting, and developer financing.

Bajaj Housing Finance has been classified as an "upper layer" NBFC by the RBI. For the fiscal year 2023-24, the housing lender reported a net profit of ?17.31 billion, a 38% increase from ?12.58 billion in FY23.

This IPO follows recent listings of other housing finance companies like Aadhar Housing Finance and India Shelter Finance. In June, Bajaj Housing Finance initially filed papers with the Securities and Exchange Board of India (Sebi) for a ?70 billion IPO, which included a fresh issue of shares worth ?40 billion and an OFS component of ?30 billion by Bajaj Finance. The market regulator approved the public issue earlier this month.

The IPO will be managed by Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, and JM Financial Ltd, who will serve as the book-running lead managers.