Bajaj Housing Finance IPO 2024: A Comprehensive Overview
The Bajaj Housing Finance IPO is a much-anticipated public offering aimed at raising ₹6,560 crore. This issue combines a fresh issue and offer for sale, marking a significant entry into the stock market.
Bajaj Housing Finance Limited (BHFL), a 100% subsidiary of Bajaj Finance Limited, serves over 88 million customers across India. Headquartered in Pune, BHFL provides financing for individuals and businesses, including home purchases, renovations, and commercial spaces. The company also offers loans against property for personal and business needs, along with working capital for business expansion. Additionally, BHFL finances developers for residential and commercial projects and provides lease rental discounting. It holds top credit ratings of AAA/Stable (long-term) and A1+ (short-term) from CRISIL and India Ratings.
BHFL IPO Details
According to RHP the public offering includes a fresh issue of 50.86 crore shares, aggregating to ₹3,560 crore, and an offer for sale of 42.86 crore shares, amounting to ₹3,000 crore.
| Particulars | Details |
|---|---|
| IPO Size | ₹6,560 crore |
| Fresh Issue | ₹3,560 crore (50.86 crore shares) |
| Offer for Sale | ₹3,000 crore (42.86 crore shares) |
| IPO Opening Date | September 9, 2024 |
| IPO Closing Date | September 11, 2024 |
| Allotment Date | September 12, 2024 |
| Listing Date | September 16, 2024 (Tentative) |
| Listing Exchange | BSE, NSE |
Price Band and Lot Size
- Price Band: ₹66 to ₹70 per share
- Lot Size: 214 shares (Minimum)
| Investor Category | Minimum Investment | Lot Size (Shares) |
|---|---|---|
| Retail | ₹14,980 | 214 (1 lot) |
| sNII (Small NII) | ₹209,720 | 2,996 (14 lots) |
| bNII (Large NII) | ₹1,003,660 | 14,338 (67 lots) |
Lead Managers and Registrar
The IPO is managed by several top-tier institutions, ensuring a smooth process for investors.
| Role | Institution |
|---|---|
| Lead Managers | Kotak Mahindra Capital, Axis Capital, Goldman Sachs (India) |
| IPO Registrar | KFin Technologies Limited |
Company Overview
Bajaj Housing Finance Limited (BHFL) is a non-deposit-taking Housing Finance Company (HFC), established in 2008. It primarily offers mortgage loans since 2018 and is part of the Bajaj Group, one of India’s most prominent conglomerates. The company’s product portfolio includes:
- Home Loans
- Loan Against Property (LAP)
- Developer Finance
- Lease Rental Discounting
- SME Loans
Company Key Highlights
| Company Name | Bajaj Housing Finance Limited (BHFL) |
|---|---|
| Established | 2008 |
| Promoters | Bajaj Finance Limited, Bajaj Finserv Limited |
| Products | Home Loans, Loan Against Property, Developer Finance, Lease Rental Discounting, SME Loans |
| Registered Office | Pune, Maharashtra, India |
| Subsidiary of | Bajaj Finserv Limited |
Financial Performance
| Financial Year | Total Revenue (₹ Cr) | Profit After Tax (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|
| FY2024 (March) | 7,617.71 | 1,731.22 | 15,878.45 |
| FY2023 (March) | 5,665.44 | 1,257.80 | 11,362.31 |
| FY2022 (March) | 3,767.13 | 709.62 | 8,251.56 |
Key Financial Indicators
- Debt-to-Equity Ratio: 5.7
- Return on Net Worth (RoNW): 3.6%
- Price-to-Book Value (P/BV): 3.72
These indicators highlight the company’s strong financial standing and growth potential.
Use of IPO Proceeds
| Objective | Utilization |
|---|---|
| Onward Lending | Strengthening the company’s capital base for future business expansion |
| General Corporate Purposes | To meet miscellaneous corporate requirements |
Shareholding Structure
| Category | Pre-Issue Shareholding | Post-Issue Shareholding |
|---|---|---|
| Promoters | 100% | Reduced after IPO |
| Retail Investors | – | 35% of Net Offer |
| QIB (Qualified Institutional Buyers) | – | 50% of Net Offer |
| NII (Non-Institutional Investors) | – | 15% of Net Offer |
Anchor Investors and Reservation
Bajaj Housing Finance successfully raised ₹1,758 crore from anchor investors ahead of the IPO opening.
| Category | Percentage Reserved |
|---|---|
| QIB | 50% of Net Offer |
| Retail | 35% of Net Offer |
| NII | 15% of Net Offer |
Anchor Investors:
| Date | Amount Raised (₹ Cr) | Shares Offered |
|---|---|---|
| September 6, 2024 | ₹1,758 crore | 251,142,856 shares |
The lock-in period for anchor investors extends until October 12, 2024 for 50% of shares, with the remaining locked until December 11, 2024.
Conclusion: Should You Invest?
With strong financials, a reliable promoter group, and growth potential, Bajaj Housing Finance offers a lucrative investment opportunity, particularly for long-term investors. The IPO is priced fairly, offering a reasonable entry point for investors looking to diversify their portfolios.
However, it’s essential to consider market conditions and consult a financial advisor before investing. FOR MORE FINANCIAL UPDATE CLICK HERE
Bajaj Housing Finance Limited Contact Details
Bajaj Housing Finance Limited
Bajaj Auto Limited Complex,
Mumbai-Pune Road,
Akurdi, Pune – 411035
Phone: +91 20 7187806
Email: bhflinvestor.service@bajajfinserv.in
Website: https://www.bajajhousingfinance.in/
Frequently Asked Questions (FAQs)
What is the IPO price band for Bajaj Housing Finance?
The IPO price band is set between ₹66 to ₹70 per share.
How can I apply for the Bajaj Housing Finance IPO?
You can apply through ASBA (Applications Supported by Blocked Amount) via your bank or through online brokerage platforms.
What is the minimum investment required for retail investors?
Retail investors need to invest a minimum of ₹14,980 for one lot, which includes 214 shares.
