Bajaj Housing Finance Seeks SEBI Approval for Rs 7,000 Crore IPO Following RBI Guidelines for Upper Layer NBFCs


Bajaj Housing Finance, a subsidiary of Bajaj Finance, has filed the necessary papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth Rs 7,000 crore. The move is in line with the Reserve Bank of India’s (RBI) recent guidelines for upper layer non-banking financial companies (NBFCs) to go public.

The IPO will see Bajaj Housing Finance become a separate entity from its parent company, Bajaj Finance, which is one of the largest NBFCs in India. The funds raised from the IPO will be used to further strengthen Bajaj Housing Finance’s position in the housing finance sector and to meet its capital adequacy requirements.

Bajaj Housing Finance has been steadily growing its loan book over the years and has emerged as a key player in the housing finance segment. The company offers a wide range of home loan products, including purchase of residential property, construction and renovation of homes, and balance transfer of existing home loans.

The decision to go public comes at a time when the housing finance sector is witnessing significant demand, driven by the government’s push for affordable housing and the increase in disposable income among the middle-class population. With the IPO, Bajaj Housing Finance aims to capitalize on this growth opportunity and expand its market presence.

The move also aligns with the RBI’s push for greater transparency and accountability in the NBFC sector. The central bank has been urging upper layer NBFCs to go public in order to enhance their corporate governance standards and improve their access to funding sources.

The IPO filing with SEBI is subject to regulatory approvals, market conditions, and other considerations. If successful, the IPO will mark a significant milestone for Bajaj Housing Finance and further solidify its position as a leading player in the housing finance industry.

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Tags: Bajaj Housing Finance, IPO, SEBI, RBI, NBFC, housing finance

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