According to sources, Bajaj Housing Finance has selected five investment banks as advisors for its proposed initial public offering (IPO). money control report.
“Kotak Mahindra Capital, Axis Capital, BofA Securities, JM Financial and SBI Capital have been shortlisted for this IPO,” the report said, citing people familiar with the development.
The person added that the deal has been “kicked off” 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 domestic lender was planning an IPO within the next 12 to 18 months. The move also marks the return of Bajaj Group to the public markets.
“The company's target valuation is between $9 billion and $10 billion. Although still in its early stages, the company is looking to raise between $900 million and $1 billion with minimal dilution and an expected valuation range in mind. I am planning to do so.” report said.
The planned IPO is in line with the Reserve Bank of India's (RBI) mandatory requirement for 'upper tier' NBFCs (non-banking financial companies) to list on stock exchanges within three years of being notified as NBFCs. be.
Bajaj Housing Finance was declared as an 'upper tier' NBFC by RBI on September 30, 2022. The former is therefore required to list by September 30, 2025, in accordance with the regulatory framework.
Meanwhile, on Friday, the Bombay Stock Exchange (BSE) was informed by Bajaj Finance about steps being taken by Bajaj's subsidiaries to meet mandatory regulatory requirements.
“The Board of Directors will meet on April 24 to discuss strategies for complying with the mandatory listing requirements. The Board of Directors will discuss various options, taking into account prevailing market conditions.” said Bajaj Finance. Said BSE.
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