Bajaj Finance to Divest Up to 2% Stake in Bajaj Housing Finance

Bajaj Finance Limited has announced plans to sell up to 2% of its stake in Bajaj Housing Finance Limited (BHFL) to comply with minimum public shareholding requirements. This move comes as part of a strategic initiative to adjust the ownership structure of BHFL.

Key Details of the Stake Sale

Aspect	Details
Current Stake	88.70%
Maximum Divestment	Up to 2%
Maximum Shares to be Sold	166,600,000
Sale Period	December 2, 2025 - February 28, 2026
Sale Method	Open market transactions
Purpose	Compliance with minimum public shareholding norms

Divestment Process

The stake sale is set to occur through open market transactions, allowing Bajaj Finance to gradually reduce its holdings in BHFL. The company has outlined a flexible approach, stating that the divestment may take place in single or multiple tranches within the specified period.

Commitment from Promoter Group

In a move to ensure transparency and fairness in the divestment process, the promoter group entities of Bajaj Housing Finance have made a significant commitment. They have pledged not to purchase any shares in the open market during the days when Bajaj Finance is conducting its stake sale.

Implications for Shareholders

This strategic move by Bajaj Finance is likely to increase the public float of Bajaj Housing Finance shares in the market. For existing shareholders of BHFL, this could potentially lead to improved liquidity in the stock. However, it's important to note that the actual impact on share price and trading volumes will depend on market conditions during the sale period.

Regulatory Compliance

The decision to divest comes as a response to regulatory requirements for minimum public shareholding in listed companies. By reducing its stake, Bajaj Finance aims to ensure that Bajaj Housing Finance meets these regulatory norms, which are designed to promote wider public participation in the ownership of listed entities.

Investors and market participants will be watching closely as this divestment unfolds over the coming months, potentially creating new opportunities in the market for Bajaj Housing Finance shares.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.55%	-1.20%	-4.93%	-15.67%	-22.43%	-36.67%

Bajaj Housing Finance Limited (BHFL) has successfully raised Rs 504.48 crore through the allotment of secured redeemable non-convertible debentures (NCDs) on a private placement basis. This move strengthens the company's financial position and demonstrates its ability to access capital markets effectively.

Key Details of the NCD Allotment

Parameter	Details
Number of NCDs	50,000
Face Value	Rs 1,00,000 per NCD
Total Amount Raised	Rs 504.48 crore
Coupon Rate	7.10% per annum
Interest Payment	Annual, starting October 16, 2025
Maturity Date	October 16, 2028
Listing	Proposed on BSE's Wholesale Debt Market Segment
Security	First pari-passu charge on book debts and loan receivables
Security Cover	1.00 times the aggregate outstanding value of debentures

Implications for Bajaj Housing Finance

This NCD allotment is significant for BHFL as it:

Enhances Liquidity: The raised funds will bolster the company's liquidity position, potentially supporting its lending activities and growth plans.
Demonstrates Market Confidence: The successful private placement indicates investor confidence in BHFL's financial stability and future prospects.
Diversifies Funding Sources: By tapping into the debt market, BHFL continues to diversify its funding mix, which is crucial for maintaining financial flexibility.
Competitive Pricing: The 7.10% coupon rate suggests that BHFL has secured funding at competitive terms, reflecting its strong credit rating and market position.

Market Context

The NCD allotment comes at a time when the housing finance sector is experiencing intense competition, particularly in the prime home loan segment. As revealed in BHFL's recent earnings call, the company has been facing pressure on margins due to aggressive pricing by public sector banks and other competitors.

Despite these challenges, BHFL has maintained a robust growth trajectory. In Q2 FY2026, the company reported:

A 24% year-on-year growth in Assets Under Management (AUM), reaching Rs 1,26,749 crore
An 18% increase in Profit After Tax (PAT)
Improved asset quality with Gross Non-Performing Assets (GNPA) at 0.26%

Looking Ahead

The successful NCD allotment reinforces BHFL's financial strategy of maintaining a well-diversified borrowing mix. As the company continues to navigate a competitive landscape, this capital raise provides additional resources to pursue growth opportunities across its various business segments, including home loans, lease rental discounting, and affordable housing.

BHFL's management remains focused on balancing growth with risk management, aiming to deliver sustainable returns while maintaining a strong market position in the housing finance sector.