“Bajaj Group Shares Surge Amidst IPO Talks for Bajaj Housing Finance”

Bajaj Housing Finance is required to be listed by September 2025 according to the current regulatory timeline established by the RBI.

In Short:

• Bajaj group shares rise 1-4% amid IPO discussions for Bajaj Housing Finance
• Potential IPO value estimated at $10 billion
• Bajaj Housing Finance’s IPO aligns with RBI’s directive for upper layer NBFC

Following reports of preliminary discussions between Bajaj Housing Finance and various investment banks regarding a potential IPO, shares across the Bajaj Group experienced a notable surge. Bajaj Finance Ltd saw its shares trading at Rs 7,318, reflecting an increase of over 4%. Similarly, Bajaj Electrical witnessed a 1% surge with shares trading at Rs 911.40, while Bajaj Finserv Ltd observed a significant rise of over 4% at Rs 1,654.

Conversely, Bajaj Auto Ltd and Bajaj Consumer Care Ltd witnessed a slight decline in their share values, with the former experiencing a 1% decrease at Rs 9,050 and the latter showing a marginal decrease of 0.07% at Rs 215.35.

The anticipated IPO of Bajaj Housing Finance is estimated to be valued at approximately $10 billion, aligning with the Reserve Bank of India’s (RBI) directive for “upper layer” non-banking financial corporations (NBFCs) to go public within a specified timeline. According to current regulatory guidelines set by the RBI, Bajaj Housing Finance is mandated to be listed by September 2025.

RBI’s recent release of a list of NBFCs subject to scale-based regulation for the fiscal year 2023-24 included Bajaj Housing Finance in the upper layer category, alongside other prominent entities such as Tata Sons, HDB Financial Services, Tata Capital Financial Services, Aditya Birla Finance, and Shanghvi Finance.

As of December 31, Bajaj Housing Finance reported a robust 31% year-on-year increase in assets under management, reaching Rs 85,929 crore. Additionally, disbursements surged by 44% year-on-year, amounting to Rs 10,727 crore. In Q3 FY24, the lender’s net interest income also exhibited a healthy growth of 17% year-on-year, reaching Rs 645 crore.

The anticipation surrounding Bajaj Housing Finance’s potential IPO has not only driven a surge in Bajaj Group shares but also underscores the broader market’s interest in upcoming offerings within the financial sector. As discussions progress, investors remain attentive to further developments regarding this significant market move.