The Bajaj Housing Finance IPO is set to open on September 9, 2024, and will close on September 11, 2024. This IPO will raise ₹6,560 crores, with ₹3,560 crores coming from fresh shares and ₹3,000 crores from selling existing shares.
Table of Contents
About Company
Bajaj Housing Finance Limited is a housing finance company that does not take deposits. It has been registered with the National Housing Bank (NHB) since September 24, 2015, and started offering mortgage loans in 2018. Since September 30, 2022, the Reserve Bank of India (RBI) has classified them as an “Upper Layer” non-banking financial company (NBFC-UL) due to their size and importance in the financial sector.
The company provides various financial solutions to both individuals and businesses, mainly for buying and renovating homes and commercial properties. Their services include home loans, loans against property, lease rental discounting, and financing for real estate developers. Their focus is on retail home loans, while also offering leasing and developer loans. This wide range of products allows them to serve different customer groups, from individual buyers to large developers.
As of March 31, 2024, Bajaj Housing Finance Limited is one of the leading housing finance companies in India based on several key factors:
- It became the largest non-deposit-taking housing finance company in India within seven years.
- It ranks as the second-largest housing finance company and the eighth-largest NBFC-UL in India, with total assets under management (AUM) of ₹913,704.0 million.
- It is the second most profitable housing finance company in India, showing strong returns on its assets and equity.
- It is one of the fastest-growing companies in its field.
- It offers one of the most diverse ranges of mortgage products in India.
- It has the highest percentage of salaried customers among large housing finance companies.
- Its focus is on higher-value homes, with larger loan amounts on average.
- It has the lowest levels of bad loans (GNPA of 0.27% and NNPA of 0.10%) among large housing finance companies.
- It has the highest credit ratings for both long-term and short-term borrowing programs in India.
- It is the second-highest loan provider, disbursing ₹446.6 billion in 2024.
- It has the second-highest assets per branch and per employee among large housing finance companies in India.
Bajaj Housing Finance IPO Important Point
1. Price Range and Quotas
| Event | Date/Details |
|---|---|
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Allotment Date | September 12, 2024 |
| Refund Date | September 13, 2024 |
| Listing on Stock Exchanges | September 16, 2024 |
| Stock Exchanges | NSE and BSE |
| Price per Share (Tentative) | ₹66 to ₹70 |
| Retail Quota | 35% |
| QIB Quota | 50% |
| HNI Quota | 15% |
2. Important Dates
| Event | Date |
|---|---|
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Allotment Date | September 12, 2024 |
| Refund Date | September 13, 2024 |
| Listing on Stock Exchanges | September 16, 2024 |
| Stock Exchanges | NSE and BSE |
3. Why You Should Pay Attention
Bajaj Housing Finance is a well-established company and has shown strong growth:
- Revenue increased from ₹5,665 crores in 2023 to ₹7,617 crores in 2024.
- Profit in 2024: ₹1,731 crores compared to a loss of ₹1,257 crores in 2023.
Investors can apply for this IPO through their banks or stock brokers using the ASBA (Application Supported by Blocked Amount) method, which blocks the required amount in your account until the shares are allotted.
4. How to Apply for the Bajaj Housing Finance IPO
- Through Online Banking: Log into your bank account, go to the IPO section, and apply by selecting the Bajaj Housing Finance IPO.
- Through Stock Brokers: Platforms like Zerodha, Upstox, and Paytm Money allow you to apply easily using UPI for payment.
5. Market Lot
- Minimum shares: 210 shares (₹14,980)
- Maximum shares (for retail investors): 2,785 shares (₹1,94,740)
6. Shareholder Quota
- If you hold shares in Bajaj Finserv or Bajaj Finance before August 30, 2024, you can apply under a special quota.
7. Financial Strength
Bajaj Housing Finance is one of India’s leading housing finance companies. It is the second-largest in its category by assets and has strong financials, making it a good choice for long-term investors.
This IPO is a good opportunity for investors looking for a solid company with a growing business in the housing finance sector. Make sure to analyze your investment goals and consult with your financial advisor before applying.
Peer Group
- LIC Housing Finance Limited
- PNB Housing Finance Limited
- Can Fin Homes Limited
- Aadhar Housing Finance
- Aavas Financiers
- Aptus Value Housing Finance
- Home First Finance
Company Promoters
- Bajaj Finance Limited
- Bajaj Finserv Limited
Bajaj Housing Finance Company Financial Report
| ₹ in Crores | |||
| Year | Revenue | Expense | PAT |
| 2022 | ₹3767.13 | ₹2807.27 | ₹709.62 |
| 2023 | ₹5665.44 | ₹3965.38 | ₹1257.80 |
| 2024 | ₹7617.71 | ₹5456.39 | ₹1731.22 |
| June 2024 | ₹2208.73 | ₹1578.85 | ₹482.61 |
Bajaj Housing Finance Valuation – FY2024
| Earning Per Share (EPS): | ₹2.6 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 15.2% |
| Net Asset Value (NAV): | ₹18.2 per Equity Share |
FAQs
What is Bajaj Housing Finance IPO?
Bajaj Housing Finance is a company offering home loans and other types of finance. They are launching an IPO (Initial Public Offering) to sell shares to the public and raise ₹6,560 crores.
When will the IPO start?
The IPO will open on September 9, 2024, and close on September 11, 2024
How much does one share cost?
The price for each share will be between ₹66 and ₹70.
How can I check if I got the shares?
You can check the allotment status on the website of the IPO registrar (KFin Technologies) after September 12, 2024.
When will the shares be listed on the stock market?
The shares will be listed on the NSE and BSE (stock exchanges) on September 16, 2024.
Read Also: Tolins Tyres IPO 2024 Review, Price, Allotment Details
