BAJAJ HOUSING FINANCE LIMITED’s ₹ 6,560 Crore IPO Set to Open on September 9, 2024!

• Price band: ₹ 66 to ₹ 70 per equity share of the face value of ₹ 10 each (“Equity Share”) of Bajaj Housing Finance Limited
• The bid/Offer Period will open on Monday, September 09, 2024, and close on Wednesday, September 11, 2024. The Anchor Investor Bidding Date shall be Friday, September 06, 2024
• Bids can be made for a minimum of 214 Equity Shares and in multiples of 214 Equity Shares thereafter
• Link to the red herring prospectus of the Company dated August 30, 2024: https://investmentbank.kotak.com/downloads/bhfl-RHP.pdf

MUMBAI: The Bid/Offer Period in respect of the initial public offering of Equity Shares of Bajaj Housing Finance Limited (“BHFL” or the “Company”, and such offering, the “Offer”), shall commence on Monday, September 09, 2024.

The total Offer Size is such number of Equity Shares (face value ₹ 10 each) aggregating up to ₹ 6,560 crores, comprising a Fresh Issue of such number of Equity Shares aggregating up to ₹ 3,560 crore and an Offer for Sale of a such number of Equity Shares aggregating up to ₹ 3,000 crore.

The Anchor Investor Bidding Date shall be on Friday, September 06, 2024and the Bid / Offer Closing Date will be Wednesday, September 11, 2024.

The Price band of the Offer is ₹ 66 to ₹ 70 per Equity Share.

Bids can be made for a minimum of 214 Equity Shares and in multiples of 214 Equity Shares thereafter.

For subscription by Employee, the reservation portion includes Equity Shares aggregating up to ₹200 crores and for shareholders of Bajaj Finance Limited and Bajaj Finserv Limited, the reservation portion includes Equity Shares aggregating up to ₹ 500 crores.

The Company intends to utilize the Net Proceeds of the Offer towards augmenting its capital base to meet future business requirements of the Company towards onward lending.

The Offer for Sale of Equity Shares comprises such number of Equity Shares aggregating up to ₹ 3,000 crore by Bajaj Finance Limited (the “Promoter Selling Shareholder”).

These Equity Shares are being offered through the red herring prospectus of the Company dated August 30, 2024, read with the addendum to the red herring prospectus dated September 2, 2024 (the “Addendum”, and together with the red herring prospectus, the “Red Herring Prospectus”) filed with the Registrar of Companies, Maharashtra at Pune (“ROC”), and subsequently with the SEBI and the Stock Exchanges (as defined below).

The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” together with BSE, the “Stock Exchanges”). For the Offer, NSE is the Designated Stock Exchange.

Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited and IIFL Securities Limited are the Book Running Lead Managers to the Offer (“BRLMs”).

This Offer is being made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made through the Book Building Process by Regulation 6(1) of the SEBI ICDR Regulations wherein in terms of Regulation 32(1) of the SEBI ICDR Regulations, not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”) provided that the Company, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis by the SEBI ICDR Regulations (“Anchor Investor Portion”), of which at least one-third shall be available for allocation to domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors) including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders out of which (a) one-third of such portion shall be reserved for applicants with application size of more than ₹200,000 and up to ₹1,000,000; and (b) two-third of such portion shall be reserved for applicants with application size of more than ₹1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) by the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilize the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts (including UPI ID for UPI Bidders using UPI Mechanism) (as defined hereinafter) in which the Bid amount will be blocked by the SCSBs or the Sponsor Banks, as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion of the Offer through the ASBA process.

Further, such number of Equity Shares aggregating up to ₹200 crore will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. Furthermore, up to such number of Equity Shares, aggregating up to ₹500 crore shall be made available for allocation on a proportionate basis only to Eligible Shareholders bidding in the Shareholders Reservation Portion, subject to valid Bids being received at or above the Offer Price. Eligible Shareholders Bidding in the Shareholders Reservation Portion can Bid up to a maximum Bid Amount of ₹200,000. Further, Eligible Shareholders Bidding in the Shareholders Reservation Portion can also Bid in the Retail Portion or Non-Institutional Portion and Employee Reservation Portion (if eligible and subject to applicable limits), and such Bids will not be treated as multiple Bids. For details, see “Offer Procedure” on page 502 of the Red Herring Prospectus and the Addendum to the Red Herring Prospectus dated September 2, 2024.

DISCLAIMER:

Bajaj Housing Finance Limited is proposing, subject to receipt of requisite approvals, market conditions, and other considerations, an initial public offering of its equity shares and has filed a red herring prospectus dated August 30, 2024, read with the addendum to the Red Herring Prospectus dated September 2, 2024 (together, the “Red Herring Prospectus”) with the Registrar of Companies, Maharashtra at Pune. The Red Herring Prospectus and the Addendum to the Red Herring Prospectus are available on the website of the Company, at www.bajajhousingfinance.in, the website of SEBI at www.sebi.gov.in, the websites of the Book Running Lead Managers, Kotak Mahindra Capital Company Limited at https://investmentbank.kotak.com, BofA Securities India Limited at https://business.bofa.com/bofas-india, Axis Capital Limited at www.axiscapital.co.in, Goldman Sachs (India) Securities Private Limited at www.goldmansachs.com, SBI Capital Markets Limited at www.sbicaps.com, JM Financial Limited at www.jmfl.com, and IIFL Securities Limited at www.iiflcap.com, and the websites of BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details refer to the Red Herring Prospectus, including the section titled “Risk Factors” on page 36 of the Red Herring Prospectus.

These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States, and the District of Columbia). These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The Equity Shares mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”).

The Equity Shares may not be offered or sold in the United States except under an exemption from, or in transactions not subject to, the registration requirements of the Securities Act. There will be no public offer of securities in the United States.