Bajaj Housing Finance IPO: Another company belonging to Bajaj Group is going to be listed. The opportunity to invest in Bajaj Housing Finance Ltd‘s Rs 6,560 crore IPO opened on Monday.
It has raised Rs 1,758 crore from 104 anchor 4 investors. They have been issued 25.11 crore shares for Rs 70.
On Monday, we will talk about gray markets. its IPO price is the price of 56.70 rupees or 81 % GMP (gray market price) from the top price range.
But, as per market experts, decisions regarding investments should be made following the core financials of the business rather than on signals gathered from the grey market. The price range for the IPO is 66 to 70 rupees.
Bajaj Housing Finance IPO Details
Bajaj Finance Ltd’s ₹ 6,560.00 crore IPO will be open for subscription from 9-11 September. You can invest in its IPO in the price band of ₹66-₹70 and in lots of 214 shares.
Allotment of shares in the IPO will be completed on the 12th of September. There will be an entry onto BSE as well as NSE on the 16th of September.
The registrar for this issue’s name is KFinTech. In this IPO new shares worth the equivalent of 3,560 crore rupees will be issued.
Other than that, 42,85,71,429 shares that have a face value of 10 rupees will be offered for sale under the Sale window. Sale window.
In the context of the Offer for Sale, these shares are to be offered for sale by the subsidiary Bajaj Finance, which is the parent company. Bajaj Finance.
The proceeds from an Offer for Sale will be given to the shareholders who are selling the shares. Additionally, the cash raised from the sale of shares will be used to boost its capital base.
Details Of Bajaj Housing Finance
Bajaj Housing Finance Ltd was formed in 2008. It is a deposit-free Housing Finance Company (HFC). It has been licensed with the National Housing Bank (NHB) since the year 2015 and has been offering mortgage loans since FY 2018.
RBI has declared it as an upper-layer NBFC in India. Due to this step of RBI, the IPO of Bajaj Housing Finance Ltd has come because according to RBI rules, it is mandatory to list the share within three years after becoming an upper-layer NBFC and this deadline for Bajaj Finance was to end in September 2025.
This subsidiary from Bajaj Group provides services like home loans and mortgages against property (LAP- Loan Against Property), rent concessions, and developer financing.
As per the information available until March 2024, the company had 3,08,693 customers who were active, of whom 81.7 % were homeowners who had home loans.
It has 215 branches in 173 locations across the states of 20 and three union territories across the nation.
It houses six central retail loan review facilities and seven loan processing central centers. Concerning the financial health of the business It has been constantly improving.
In the fiscal year 2022, the company made a net profit of approximately 709.62 crore rupees. It increased to Rs 1,257.8 crore by the following fiscal year 2023. It will then increase to 1,731.22 crore rupees in 2024’s financial year.
During the timeframe the company’s revenues grew at a compound rate (CAGR) that was more than 42 % a year, reaching more than 7,617.71 crore rupees.
In the context of this fiscal year 2024-25 in the first quarter, April-June 2024, the company made a net profit of approximately 482.61 rupees and revenue of 2,208.73 crore rupees.
What Is The Trend Of Brokerage?
A full-service broker says that its sales and profits are increasing continuously and its financial health is very strong. It also has good support from the strong legacy of Bajaj Group.
The brokerage believes that this IPO has come at the right valuation, hence the brokerage has given it a subscribe rating not only for listing gains but also for long-term investment.
Quick Fact
| Company name | Bajaj Housing Finance |
|---|---|
| IPO Size | ₹6,560 crore |
| Raised Amount from Anchor Investors | ₹1,758 crore |
| IPO Price Band | ₹66 – ₹70 |
| Gray Market Premium (GMP) | ₹56.70 |
| GMP % from Top Price Range | 81% |
| IPO Open Date | 9 September |
| IPO Close Date | 11 September |
| Allotment Date | 12 September |
| Listing Date | 16 September |
| Registrar | KFinTech |
| Fresh Issue Size | ₹3,560 crore |
| Offer for Sale (OFS) Size | 42,85,71,429 shares |
| Face Value of Shares | ₹10 per share |
| Parent Company | Bajaj Finance |
| Established Year | 2008 |
| Licensed with NHB Since | 2015 |
| Services Offered | Home Loans, Mortgage Loans, Rent Concessions, Developer Financing |
| Customers (as of March 2024) | 3,08,693 |
| Home Loan Customers % | 81.7% |
| Branches | 215 |
| Locations | 173 across 20 states and 3 union territories |
| Central Retail Loan Review Facilities | 6 |
| Loan Processing Centers | 7 |
| Net Profit FY 2022 | ₹709.62 crore |
| Net Profit FY 2023 | ₹1,257.8 crore |
| Net Profit FY 2024 | ₹1,731.22 crore |
| Revenue CAGR | More than 42% |
| Revenue FY 2024 | ₹7,617.71 crore |
| Net Profit Q1 FY 2025 | ₹482.61 crore |
| Revenue Q1 FY 2025 | ₹2,208.73 crore |
| RBI Status | Upper-layer NBFC |
| IPO Rationale | To boost capital base, mandatory listing as per RBI rules |
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