Bajaj Housing Finance could look at strategic investor mix post IPO

Bajaj Housing Finance, which is set to launch a ₹6,560-crore IPO later next week, is keeping options open to sell stakes to strategic investors.

Sanjiv Bajaj, chairman and managing director of Bajaj Finance, told ET the company will be keenly watching the investors subscribing to the IPO for an eventual shareholder mix, as the promoters will be required to dilute stakes in phases to comply with listing norms.

"We will see down the line, even now, we will see through the IPO, what is the kind of mix of investors that we get," Bajaj said.


As per the Sebi regulations, promoters of all listed entities must not hold more than 75% stake in the company. Bajaj indicated that the company will consider diluting its stake further in the next three years post-IPO.

"So, post the IPO, we will just see what kind of mix of investors we have got and then what kind of mix is a good mix to have going forward and accordingly, we will plan," Bajaj said.

"The promoters are diluting close to 10-11% stake in the company through the IPO," said a source privy to the development. The company declined to comment.

Bajaj Housing Finance was set up in 2017 as a 100% subsidiary of Bajaj Finance.

"The team has done a tremendous job how they build the company, as of March 2024, we have assets of over ₹90,000 crore, the largest non-deposit-taking housing finance company already," Bajaj told ET. "In seven years' time to become the largest non-deposit-taking HFC just goes to show the tremendous opportunity that India is providing."

Bajaj added that as per the Reserve Bank of India's scale-based regulations, the mortgage lender qualified in the upper layer of non-bank lenders. RBI has stipulated that all upper-layer NBFCs which have ₹50,000 crore of assets under management are required to be listed by September 2025. Bajaj Housing Finance is one of 15 finance companies that are mandated to be listed under the scale-based regulations.