India's Bajaj Housing Finance targets $7 billion valuation in IPO
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Bajaj Housing Finance is targeting a valuation of 582.97 billion rupees ($6.94 billion) in one of India's biggest initial public offerings this year, a term sheet showed on Tuesday.
Bajaj Housing Finance, the country's second biggest home loan financier by assets under management, has set a price band of 66-70 rupees per share for its $782 million IPO, which will run from Sept. 9 to Sept. 11.
The IPO is among the biggest offerings so far this year in a red-hot market that has seen the likes of Ola Electric Mobility and Bharti Hexacom enjoy bumper listings.
About 200 companies raised more than $7 billion this year, more than double of last year, LSEG data showed, as the stock market hit record highs over 50 times.
A Reuters poll has also shown home prices in India are set to rise steadily over the next few years, driven by demand for luxury properties, which forms a dominant part of Bajaj Housing Finance's business.
Research firm Mordor Intelligence estimates India's residential real-estate market will grow three-folds to $687 billion by 2029.
Bajaj Housing Finance is issuing new shares worth up to 35.60 billion rupees, while parent Bajaj Finance is selling shares worth up to 30 billion rupees.
The company trimmed its total offer size from $838 million planned earlier. The cut is based on fund requirements for the next 2-3 years, Chairman Sanjiv Bajaj said at a press conference on Tuesday.
It reported a profit after tax of 17.31 billion rupees for the year ended March 31, 2024 up about 38% year-on-year, while total revenue from operations rose 34% to 76.17 billion rupees.
The company's decision to opt for a listing was driven by regulatory requirements and the size it had achieved, Bajaj said.
The Reserve Bank of India in 2022 introduced norms that required firms of size like Bajaj Housing Finance to be listed on stock exchanges by September 2025.
Kotak Investment Banking, BofA Securities India, Goldman Sachs and Axis Capital are among the bookrunning lead managers of the IPO.
($1 = 83.9450 Indian rupees)
