The Bajaj Housing Finance IPO is scheduled to open on September 9, 2024. This IPO presents an opportunity to participate in the growth of this leading housing finance company. With a price band of ₹66 to ₹70 per share, the IPO aims to strengthen Bajaj Housing Finance’s capital base to support its expansion and lending capabilities. This blog provides an overview of the IPO details, objectives, and critical strengths of Bajaj Housing Finance Limited.
Company Background: Bajaj Housing Finance Limited
Bajaj Housing Finance Limited was established in 2008. It operates as a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015. It is a part of the Bajaj Group, which launched its mortgage loan products in 2018. Bajaj Housing Finance Ltd. has offered solutions for home purchases, renovations, and commercial spaces. Its product range includes Home Loans, Loan Against Property (LAP), rent concessions and developer finance.
As of March 31, 2024, the company serves 308,693 active customers, 81.7% being Home Loan borrowers. It operates across twenty states and three union territories. The company has 215 branches and manages services through six loan review centres and seven processing centres.
Objectives of the IPO
The primary objective of the Bajaj Housing Finance IPO is to augment its capital base to support future business growth. The company plans to use the net proceeds to strengthen its financial position.
Bajaj Housing Finance Limited IPO Details
-
IPO Dates
The Bajaj Housing Finance IPO will be open for subscription from September 9, 2024, to September 11, 2024.
-
Price Band and Face Value
Each share carries a face value of ₹10, with a price band set between ₹66 to ₹70 per share. Investors can bid for a minimum lot size of 214 shares.
-
Issue Size
The IPO comprises a total issue size of 937,142,858 shares to raise to ₹6,560 crore. This includes:
- Fresh issue: 508,571,429 shares, which amounts to ₹3,560 crore.
- Offer for sale (OFS): 428,571,429 shares valued at ₹3,000 crore.
- Issue Type
This Book Built Issue IPO allows you to bid within the given price band.
-
Listing and Shareholding
Post-subscription, the shares will be listed on the BSE and NSE. The company’s pre-issue shareholding stands at 7.82 billion shares, which will rise to 8.33 billion shares post-issue.
Key Strengths of Bajaj Housing Finance Limited
- Strong Financial Performance: Bajaj Housing Finance has demonstrated robust financial growth in recent years. Between FY23 and FY24, the company saw a 34% increase in revenue and a 38% rise in profit after tax (PAT). The company’s total assets grew to ₹88,538.83 crore by June 30, 2024, which shows steady expansion. Its assets under management (AUM) increased at a 30.9% CAGR between FY22 and FY24, reaching ₹91,370.40 crore by the end of FY24, with a further increase to ₹97,071.33 crore in Q1 FY25.
- Diverse Product Portfolio: Bajaj Housing Finance offers a variety of financial products, including Loan Against Property (LAP), developer finance, and lease rental discounting. As of June 30, 2024, LAP accounted for 10% of AUM, developer finance loans for 11.2%, and lease rental discounting for 19.5%.
- Expanding Offerings and Low NPAs: In December 2023, Bajaj Housing Finance expanded its offerings by becoming an IRDAI-registered corporate agent to add insurance products. Furthermore, the company has maintained strong asset quality, with net NPAs at just 0.11% as of June 30, 2024.
How do you apply for the IPO using HDFC Sky’s One-click IPO Feature?
Here is how you can apply using the One-click IPO feature:
- Access your HDFC Sky account.
- Go to your profile, select “Indian Stocks,” then choose “IPO.”
- Find and select the Bajaj Housing Finance IPO and click “Apply Now.”
- Enter your bid and customise as needed.
- Choose UPI as your payment method.
- Approve the payment mandate in your UPI or banking app.
- Review and confirm your order.
Simplify Your IPO Investments with HDFC Sky’s One-Click IPO Feature
The Bajaj Housing Finance IPO presents an attractive investment opportunity, given its financial performance and growth potential. To take advantage of this IPO and other stock market opportunities, use the HDFC Sky app. Its One-Click IPO feature makes the investment process easy and secure. For a seamless investment experience, download the HDFC Sky app.