Bajaj Housing Finance IPO

Bajaj Housing Finance IPO is set to open on 09 September 2024 and will close 11 on September 2024. The company is a non-deposit-taking Housing Finance Company that has been registered with the National Housing Bank.

The IPO includes a fresh issue of  50.86 crore shares aggregating ₹3,560 Cr and an offer for sale of 42.86 crore shares aggregating ₹3,000 Cr. The price range is set between ₹66 to ₹70 per share and the lot size is 214 shares. 

The allotment is scheduled to be finalized on 12 September 2024. It will go public on BSE & NSE, with a tentative listing date of 16 September 2024.

Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd and IIFL Securities Ltd are the book-running lead managers, while KFin Technologies Ltd is the registrar. 
 

1. Augmenting the capital base to meet future business requirements towards onward lending.
2. General corporate purposes.
 

Bajaj Housing Finance Limited, a non-deposit-taking Housing Finance Company (HFC), has been registered with the National Housing Bank (NHB) since September 24, 2015, and began mortgage lending operations in Fiscal 2018. Since September 30, 2022, the company has been classified as an “Upper Layer” NBFC (NBFC-UL) by the Reserve Bank of India (RBI) under its “Scale Based Regulations (SBR): A Revised Regulatory Framework for NBFCs,” announced on October 22, 2021.

The company offers a wide range of financial solutions tailored for individuals and corporate clients, focusing on the purchase and renovation of residential and commercial properties. Their product suite includes home loans, loans against property (LAP), lease rental discounting, and developer financing. While their primary focus is on individual retail housing loans, they also offer a diverse portfolio of lease rental discounting and developer loans, serving customers from individual homebuyers to large-scale developers.

As of March 31, 2024, Bajaj Housing Finance Limited has become a leading HFC in India across several key parameters. In just seven years of operating in the mortgage sector, it has grown to be the largest non-deposit-taking HFC in India by assets under management (AUM). The company is also ranked as the second largest HFC and the eighth largest NBFC-UL in India by AUM, totaling ₹913,704 million. Additionally, Bajaj Housing Finance is the second most profitable HFC in India, with strong returns on average assets and equity for Fiscal 2024.

The company has been one of the fastest-growing HFCs and NBFCs-UL based on AUM compound annual growth rate (CAGR) from Fiscal 2022 to 2024. It is recognized as the most diversified HFC in India, offering an extensive range of mortgage products. Bajaj Housing Finance holds the highest proportion of salaried customers in its home loan portfolio among large HFCs, focusing on prime housing with higher average ticket sizes. The company also maintains the lowest gross non-performing assets (GNPA) ratio of 0.27% and net non-performing assets (NNPA) ratio of 0.10% among large HFCs in India.

Bajaj Housing Finance’s financial stability is further demonstrated by holding the highest possible credit ratings in India for both long-term and short-term borrowing programs. In Fiscal 2024, the company achieved the second-highest loan disbursement among HFCs in India, amounting to ₹446.6 billion. Additionally, it ranks second in terms of AUM per branch and AUM per employee among large HFCs in the country.

Peer Comparison

● LIC Housing Finance Ltd 
● PNB Housing Finance Ltd 
● Can Fin Homes Ltd 
● Aadhar Housing Finance 
● Aavas Financiers 
● Aptus Value Housing Finance 
● Home First Finance