Bajaj Housing Finance, a leading non-deposit taking housing finance company and a subsidiary of Bajaj Finance is coming up with its IPO this September. Investors looking to apply for this IPO should carefully examine the company’s business areas, financials, and performance amongst its peers. So, let’s review the details of the Bajaj Housing Finance IPO and its analysis.
Bajaj Housing Finance IPO Date 2024
Bajaj Housing Finance IPO is set to open on September 9, 2024, and its bidding will close on September 11, 2024.
Here are the key dates to know about this IPO:
- Allotment Date: September 12, 2024
- Initiation of Refunds (in case of less or no allotment): September 13, 2024
- Shares Credited to Your Demat Account: September 13, 2024
- Listing Date: September 16, 2024
Bajaj Housing Finance IPO Details
Its total issue size is ₹6,560 crores which includes the fresh issue of ₹3,560 crores and offer for sale of ₹3,000 crores.
Here are the key details of the IPO:
- Bajaj Housing Finance IPO Price Band: ₹66 to ₹70 per share
- Face Value: ₹10 per share
- Lot Size: 214 Shares (Bid in multiples of 214)
- Total Issue Size and Amount: 93,71,42,858 shares (valuation of up to ₹6,560 crores)
- Fresh Issue Size and Amount: 50,85,71,429 shares (valuation of up to ₹3,560 crores)
- Offer for Sale Size and Amount: 42,85,71,429 shares of ₹10 (valuation of up to ₹3,000 crores)
- Listing On Exchange: NSE and BSE
Bajaj Housing Finance Ltd IPO Proceeds
The money that is raised in this IPO helps in increasing the capital base of the company and is used to fulfill future business requirements related to onward lending. It also enhances the brand visibility of the company and establishes its name amongst the stock market investors.
The company has reserved the shares of the value of ₹500 crores for the shareholders of Bajaj Finance and Bajaj Finserv. The shareholders of the parent company are only allowed to apply for this quota if they were there in the list on the RHP (Red Herring Prospectus) filing date. Along with that, ₹200 crores worth of shares have been kept aside for the BHFL employees.
Here are some of the offers reserved for other categories:
- For Retail Investors: Shares offered up to 35% of the net offer
- For Non-Institutional Investors (NII): Shares offered up to 15% of the net offer
- For Qualified Institutional Buyers (QIBs): Shares offered up to 50% of the net offer
The retail investors include the resident Indian individuals, eligible NRIs, and HUFs. In the NIIs category, companies, corporate bodies, trusts, etc. are also included.
In the QIBs category, public financial institutions, commercial banks, mutual funds, development financial institutions, state industrial development corporations, insurance companies, etc. are included.
Bajaj Housing Finance Lot Size
Bajaj Housing Finance IPO lot size is 214 shares and the investors can apply in the multiples such as 428 shares, 642 shares, and so on.
The minimum and maximum of the lot size that each category of investor can apply in this IPO are:
| Applicant Type | Lot Size | Number of Shares | Amount (in ₹) |
| Retail (Min) | 1 | 214 | 14,980 |
| Retail (Max) | 13 | 2,782 | 1,94,740 |
| S-HNI (Min) | 14 | 2,996 | 2,09,720 |
| S-HNI (Max) | 66 | 14,124 | 9,88,680 |
| B-HNI (Min) | 67 | 14,338 | 10,03,660 |
- The small HNI (S-HNI) are the investors who can bid for shares valued between ₹2 lakhs and ₹10 lakhs.
- The big HNI (B-HNI) are the investors who can bid for shares valued at more than ₹10 lakhs.
Bajaj Housing Finance Promoter Holding
Bajaj Finance Limited is the promoter of the Bajaj Housing Finance and is holding 100% equity in the company. The pre-IPO share holding of the promoters is 6,71,21,55,564 shares.
Bajaj Housing Finance: Company Overview
Bajaj Housing Finance was established in 2008 and has been registered since 2015 with the National Housing Bank (NHB) to carry out the housing finance business. It was given the status of Upper Layer NBFC on September 30, 2022. It holds an important place in the Indian housing finance industry and is focused highly on home loans. It also works in the area of financing the commercial real estate business.
Its strong financial position is highlighted in its highest credit rating of AAA/stable from CRISIL and India Ratings for its long-term debt programme. For short-term debt programmes as well, it has A1+ from CRISIL and India Ratings. In April 2024, the company raised ₹2,000 crores through the right issue to fund its expansion plans for FY25.
Bajaj Housing Finance: Key Business Areas and Performance
The four key business areas where the company operates are home loans, LAP, LRD, and developer financing.
Home Loan
The company provides home loans for under-construction or move-in properties to salaried and self-employed people. The average loan value is ₹4.6 million and the loans are available across 174 locations. In FY24, this segment’s AUM grew by 24% on a year-on-year basis.
Loan Against Property
In this segment, loans against property mortgages are provided to self-employed individuals, professionals, and MSMEs. It is operated at 74 locations and the average loan value is ₹5.8 million. In FY24, this segment’s AUM grew by 22% on a YoY basis.
Lease Rental Discounting
HNIs, developers, and corporates are provided the lease rental discounting service with a loan amount ranging from ₹10 crores to ₹550 crores. In FY24, this segment’s AUM grew by 57% on a YoY basis.
Developer Loans
Specially designed for developers who have a strong track record in the timely delivery of projects, this offering is available at 13 locations with an average loan value of ₹45 crores. In FY24, this segment’s AUM grew by 69% on a YoY basis.
Bajaj Housing Finance: Financials
The company’s key financial metrics for different periods are as follows:
| Period Ended / (in ₹ crores) | 30 June 2024 | 31 Mar 2024 | 31 Mar 2023 | YoY Change |
| Assets | 88,538.83 | 81,827.09 | 64,654.14 | 26.56% |
| Revenue | 2,208.73 | 7,617.71 | 5,665.44 | 34.46% |
| Profit After Tax | 482.61 | 1,731.22 | 1,257.80 | 37.64% |
| AUM | 97,071.00 | 91,370.00 | 69,228.00 | 31.98% |
| Net Worth | 14,719.91 | 12,233.50 | 10,503.19 | 16.47% |
| Reserves and Surplus | 4,252.83 | 5,520.81 | 3,791.03 | 45.63% |
| Total Borrowing | 73,347.06 | 69,129.32 | 53,745.39 | 28.62% |
From FY23 to FY24, the company’s revenue has grown by around 34% while the PAT has risen by 38%. Also, the AUM (Assets Under Management) has grown by a sparkling percentage of 32%.
Key Ratios of Bajaj Housing Finance
The key ratios highlighting the company’s performance:
| Period Ended / (in %) | 30 June 2024 | 31 Mar 2024 | 31 Mar 2023 | YoY Change (Basis Points) |
| GNPA (Gross Non-Performing Assets) | 0.28 | 0.27 | 0.22 | 5 |
| NNPA (Net Non-Performing Assets) | 0.11 | 0.10 | 0.08 | 2 |
| ROA (Return on Assets) | 2.3 | 2.4 | 2.3 | 10 |
| ROE (Return on Equity) | 14.3 | 15.2 | 14.6 | 60 |
| CRAR (Capital Adequacy Ratio) | 23.82 | 21.28 | 22.97 | -169 |
| PCR (Provision Coverage Ratio) | 59.37 | 63.70 | 63.60 | 10 |
| D/E Ratio (Debt to Equity Ratio) | 4.98 | 5.70 | 5.10 | 60 |
Bajaj Housing Finance: Peer Comparison
The comparison of the company’s financial position with the peers in the same industry.
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (₹) | P/E (x) | RoNW (%) |
| Bajaj Housing Finance | 2.6 | 2.6 | 18.2 | 31.62 (Pre-IPO) | 15.2 |
| LIC Housing Finance | 86.5 | 86.5 | 572.3 | 7.3 | 16.2 |
| PNB Housing Finance | 58.4 | 58.4 | 576.6 | 12.4 | 11.6 |
| Can Fin Homes | 56.4 | 56.4 | 326.2 | 12.9 | 18.8 |
| Aadhar Housing Finance | 19 | 18.4 | 104.3 | 18.7 | 18.4 |
*Data as on March 31, 2024
Through the peer comparison, we can see that the company’s EPS is low while its PE ratio is also high, which means it can turn overvalued. The Return on Net Worth (RoNW) is competitive and signifies a good profit-earning capacity of the company.
Experts Review on Bajaj Housing Finance IPO
This IPO is gaining traction even before the listing and the Bajaj Housing Finance IPO GMP as of September 5, 2024 (at 13:26) is ₹51. It means that the share could list at the estimated price of ₹121, which is 72.86% higher than the issue price of ₹70 per share.
For more detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels to hear what our experts are saying. Take smart decisions and apply for this IPO easily on the SMC ACE App and open the demat account now.
Bajaj Housing Finance Contact Information
For inquiries related to the Bajaj Housing Finance IPO, you can contact at the following places:
Registered Office Address: Bajaj Auto Limited Complex, Mumbai Pune Road, Akurdi, Pune 411 035, Maharashtra, India
Phone: +91 2071878060
Email: bhflinvestor.service@bajajfinserv.in
Company Website: www.bajajhousingfinance.in
Bajaj Housing Finance IPO Registrar Details:
Registrar Name: KFin Technologies Limited
Phone: +91 40 67162222/ 18003094001
Email: bhfl.ipo@kfintech.com
FAQs
Is Bajaj Housing Finance IPO good?
Bajaj Housing Finance has a good financial position and also the buzz is very high in the market for this IPO. The true performance of this IPO is disclosed when it gets listed.
Who can apply for Bajaj Housing Finance IPO?
Retail investors, NIIs, QIBs, employees of BHFL, and shareholders of the parent company can apply for the Bajaj Housing Finance IPO.
Is Bajaj Housing Finance listed?
Bajaj Housing Finance will be listed on NSE and BSE on September 16, 2024.
References
https://www.hindustantimes.com/business/bajaj-housing-finance-ipo-all-you-need-to-know-about-the-rs-6-560-crore-issue-101725342627322.html
https://www.bajajhousingfinance.in/documents/37350/5400623/BHFL+AR+2023-24++Cover+to+Cover+Digital+PDF+28+06+2024.pdf
https://www.bajajhousingfinance.in/documents/37350/5657700/Financial+Highlights+Q1FY25.pdf
https://www.bajajhousingfinance.in/documents/37350/5325308/DR
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