Bajaj Housing Finance has filed preliminary papers with capital markets regulator Sebi to raise ₹7,000 crore through an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares of up to ₹4,000 crore and an offer for sale (OFS) of equity shares worth ₹3,000 crore by parent Bajaj Finance, according to the draft red herring prospectus (DRHP).

The share sale is being conducted to comply with the Reserve Bank of India’s (RBI) regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.

Bajaj Housing Finance is a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015. It offers financial solutions for purchasing and renovating residential and commercial properties.

It has been identified and categorised as an “upper layer” NBFC by the RBI in India, and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing.

For the entire financial year 2023-24, the housing lender posted a net profit of ₹1,731 crore, marking a 38% growth from ₹1,258 crore in FY23.

Housing finance companies Aadhar Housing Finance and India Shelter Finance have been recently listed on the stock exchanges.

On June 6, the board of Bajaj Finance approved the sale of shares worth ₹3,000 crore in the initial public offering of Bajaj Housing Finance.

Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd and JM Financial Ltd are the book-running lead managers that will manage the company’s public issue.

Many expectant parents are making significant financial adjustments and reevaluating their financial strategies as inflation impacts the economy. One of their decisions, while providing short-term relief, has far-reaching consequences.

A recent BabyCenter survey found that nearly three out of four expecting parents make considerable financial sacrifices. The most common are postponing debt payments or shelving plans to clear them.

Delaying debt payments can seem like a necessary relief for new parents, but it comes with significant long-term costs. Financial advisor Jonathan Feniak emphasizes the gravity of this decision:

“Postponing debt payments can increase the total amount of interest paid and negatively impact credit scores. This can hinder future borrowing opportunities and reduce financial flexibility—making it challenging to manage unexpected expenses or economic downturns. It can hinder parents’ ability to pursue other financial goals, like saving for a child’s education or investing in a home.”

Consider this simplified scenario: An expecting couple decides to delay their $10,000 debt repayment. Originally, they were on a three-year repayment plan at 7% interest, with monthly payments of approximately $308.77, resulting in total interest payments of about $1,115.72. By postponing payments for a year, they shift to a four-year repayment plan, which includes a year of interest-only payments. This adjustment lowers their monthly payments in the short term but increases their total interest to approximately $1,864.48—an increase of $748.76.

Deferment impacts a family’s long-term financial health and resilience and influences broader economic trends. Families delaying major purchases and reducing discretionary spending can suppress overall consumer spending.

Still, financial adjustments are deeply personal, as shared by working father Anthony Dutcher. “Becoming a dad last year was a whirlwind of excitement and new challenges. We relied heavily on credit cards to cover hospital bills, which led us to debt consolidation loans. Not the most glamorous route, but worth every penny for our healthy and happy baby.”

Working mom Jacquelyn Farnsworth recalls how debt repayment drove her back to work after maternity leave. “I was asked so many times if I was sure that I wanted to go back to work. To me, the question felt like an affront. What choice did I have? We couldn’t pay our bills if I wasn’t working, and now I had medical debt from the birth and a new credit card balance to pay off as well.”

“For me, as well as my wife, the decision to postpone debt payments was driven by the immediate need to cover essential expenses like diapers, baby gear, and those adorable, but sometimes pricey, onesies,” explains working father Nguyen Huy. “Childcare cost was a big factor, too. Looking back, postponing debt payments was a significant sacrifice, but it also taught me valuable lessons in financial management and resilience.”

Whether debt payments are modified or postponed altogether, the choice weighs on family relationships. Financially overstretched families also tend to decrease communication and increase tension, says counselor Shenella Karunaratne. “When partners are both exhausted due to the new baby and also stressed out about money, they often start to talk to each other less. This is the exact opposite of what you should be doing.”

For expecting parents, the first step to adjusting to their new financial reality is reviewing their current budget. Kevin R. Chancellor, a financial advisor, suggests a detailed budget analysis: “Identify necessary adjustments and prioritize spending to maintain a healthy financial baseline.” Strategies such as the ‘snowball’ or ‘avalanche’ methods for debt repayment offer systematic approaches to managing and eventually overcoming debt.

Finance director Adam Horvat also suggests restructuring budgets to accommodate unexpected costs and setting up automated systems to manage savings and debt payments efficiently: “Adopting an envelope budgeting system can help curb overspending on non-essentials, making it easier to allocate funds where they are most needed.”

Certified financial planner Charlie Pastor recommends considering balance transfer credit cards for short-term relief: “These cards can offer an interest-free period, providing breathing room to settle into the new family dynamics without accumulating interest.”

Postponing debt payments can feel like a quick fix for expectant parents needing some financial breathing room, but it’s crucial to think about the bigger picture. While helpful in the short term, these financial shortcuts can impact the broader economy and their personal financial health down the line.

As families work through these tough times, getting expert financial advice and making a solid plan can really make a difference. The aim is to balance immediate financial relief with long-term stability so families can handle today’s financial challenges while building a strong foundation for the future.

Sundaram Finance Managing Director Rajiv Lochan says that he expects the new government would focus on economic growth, continuity in infrastructure policy, containing inflation and creating jobs.

Continuity in policy, a favourable monsoon, and a vibrant festive season are expected to bring back consumer demand and momentum during the second half of the current fiscal, said Sundaram Finance Ltd. (SFL) Managing Director Rajiv Lochan.

“The government is continuing, so there will be continuity in most of the policy agenda,” he said during an interaction.

On macro and economic front, Mr. Lochan said the new government was expected to focus on economic growth, ensuring continuity in infrastructure policy, besides containing inflation and creating jobs.

He hoped that driving up consumption, improving exports and bringing back private sector capital investments would remain priorities.

On the medium to long-term prospects, he said, “Our primary objective is getting to a market share in the geographies that we operate in. If the market moves up by 10% in a particular asset class, we want 10% of that growth. If the market plateaus, we still want to hold the same 10%. So, we let the market growth determine our overall growth.”

“Our focus has been on market share which we think is much more controllable than going after a particular growth. This has been the long-standing philosophy for many years and we are just continuing that,” he said.

During FY24, SFL recorded standalone net profit rose 23% to ₹1,334 crore, excluding exceptional item. Disbursements grew 25% to ₹26,163 crore. Assets Under Management increased by 27% to ₹43,987 crore.

Gross non-performing asset declined by 40 bps to 1.26%, while net NPA fell 23 bps to 0.63%. SFL reported capital adequacy ratio of 20.5%.

Talking about the growth, Mr. Lochan said, “In the M&HCV segment, we are on our way back from the pre-COVID phase and are still a bit short. We have regained our share, in the retail CV and passenger cars space. In the tractors and construction equipment segment, we have significantly surpassed our share.”

“We are a long-term sort of marathon runners that set a steady pace and it will continue. We will try and balance growth with quality and profitability. That agenda will continue,” he said.