Bajaj Housing Finance picks five investment banks as advisors for proposed IPO: Report
Bajaj Housing Finance has selected five investment banks as advisors for its proposed initial public offering (IPO). moneycontrol report,
“Kotak Mahindra Capital, Axis Capital, BofA Securities, JM Financial and SBI Capital have been shortlisted for this IPO,” the report quoted a person aware of the development as saying.
The person said the deal has “been initiated” and work on the issue has begun. However, it was not immediately clear whether more banks would be added at a later stage.
Bajaj Housing Finance IPO
The development comes days after Moneycontrol first reported on March 27 that the home financier was planning to launch an IPO within the next 12-18 months. The move will also mark the return of Bajaj Group flagship to the public markets.
“The target valuation of the firm is between $9 billion to $10 billion. “While these are early days, the company plans to raise $900 million to $1 billion with minimal dilution and an expected valuation range.” report Said.
The planned IPO is in line with the Reserve Bank of India's (RBI) mandatory requirement for “upper layer” NBFCs (non-banking financial companies) to be listed on stock exchanges within three years of being notified as NBFCs.
Bajaj Housing Finance was declared an “upper tier” NBFC by the RBI on September 30, 2022. Therefore, as per the regulatory framework, the former is mandatory to get listed on or before September 30,2025.
Meanwhile, Bombay Stock Exchange (BSE) on Friday was informed by Bajaj Finance about the actions being taken by its subsidiary to meet the mandatory regulatory requirements.
“The board of directors will meet on April 24 to discuss strategies for compliance with the mandatory listing requirement. The board will discuss various options keeping in mind the current market conditions,'' Bajaj Finance told BSE.
