Apply for Bajaj Housing Finance IPO: Opens 9th September, Price Band ₹66 to ₹70 Per Share

Founded in 2008, Bajaj Housing Finance Limited is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015. The company has been offering mortgage loans since the financial year 2018 and is part of the Bajaj Group, a diversified conglomerate with interests in various sectors.

Bajaj Housing Finance provides customised financial solutions to individuals and corporations to purchase and renovate homes and commercial spaces. The company's comprehensive mortgage product range includes:

• Home loans
• Loan against property (LAP)
• Rent concessions
• Developer finance

Key highlights of Bajaj Housing Finance's operations include:

• 308,693 active customers as of 31st March 2024, with 81.7% being home loan customers
• Network of 215 branches across 174 locations in 20 states and three union territories
• Six centralised retail loan review centres and seven centralised loan processing centres

The Objective of the Issue

Augment Capital Base: The company intends to utilise the net proceeds to strengthen its capital base to meet future business requirements, particularly for onward lending.

Please note: Up to ₹5,000.0 million has been reserved under the Shareholders Reservation Portion.

Highlights of Bajaj Housing Finance IPO

• Bajaj Housing Finance IPO is set to launch with a book-built issue of ₹6,560.00 crores. The issue combines a fresh issue and an offer for sale. Here are the key details of the IPO:
• The IPO opens for subscription on 9th September 2024 and closes on 11th September 2024.
• The allotment is expected to be finalised on 12th September 2024.
• Refunds will be initiated on 13th September 2024.
• Credit of shares to Demat accounts is also expected on 13th September 2024.
• The company will tentatively list on BSE and NSE on 16th September 2024.
• The price band is set at ₹66 to ₹70 per share.
• The fresh issue comprises 50.86 crore shares, aggregating to ₹3,560.00 crores.
• The offer for sale comprises 42.86 crore shares, aggregating to ₹3,000.00 crores.
• The minimum lot size for the application is 214 shares.
• Retail investors need to invest a minimum of ₹14,980.
• The minimum investment for small NII (sNII) is 14 lots (2,996 shares), amounting to ₹209,720.
• The minimum investment for big NII (bNII) is 67 lots (14,338 shares), amounting to ₹1,003,660.
• Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited, and IIFL Securities Ltd are the book-running lead managers for the IPO.
• Kfin Technologies Limited serves as the registrar.

Watch Our In-Depth Bajaj Housing Finance IPO Review Video!

Bajaj Housing Finance IPO- Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 11th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Bajaj Housing Finance IPO Issue Details/Capital History

The Bajaj Housing Finance IPO is scheduled from 9th September to 11th September 2024, with a price band of ₹66 to ₹70 per share and a face value of ₹10. The total issue size is 937,142,858 shares, raising up to ₹6,560.00 crores. This includes a fresh issue of 508,571,429 shares aggregating to ₹3,560.00 crores and an offer for sale of 428,571,429 shares aggregating to ₹3,000.00 crores. The pre-issue shareholding is 7,819,575,273 shares, which will increase to 8,328,146,702 shares post-issue.

Bajaj Housing Finance IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 214 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

Also Bajaj Housing Finance IPO Anchor Allocation at 26.8%

SWOT Analysis: Bajaj Housing Finance Ltd

Strengths:

• Part of the reputed Bajaj Group, providing brand recognition and trust
• Comprehensive mortgage product range catering to diverse customer needs
• Extensive network of branches and centralized processing centers
• Strong customer base with a focus on home loan customers

Weaknesses:

• Dependence on the housing and real estate market, which can be cyclical
• Exposure to credit risk, particularly in the case of loan defaults

Opportunities:

• Expanding product offerings to include newer financial services
• Increasing urbanization and demand for housing finance in India

Threats:

• Rising interest rates may affect borrowing costs and customer demand
• Competition from other Housing Finance Companies and banks

Financial Highlights: Bajaj Housing Finance Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

The financial performance of Bajaj Housing Finance Limited demonstrates a strong growth trajectory over the past three fiscal years.

Assets have shown significant growth, increasing from ₹48,52,708 lakhs in FY22 to ₹81,82,709 lakhs in FY24, representing a growth of about 68.6% over two years. This substantial asset increase indicates significant expansion in the company's loan portfolio and operational scale. The year-over-year growth from FY23 to FY24 was 26.6%, showing continued strong expansion.

Revenue has seen consistent and impressive growth, rising from ₹3,76,713 lakhs in FY22 to ₹7,61,771 lakhs in FY24, marking a robust growth of about 102.2% over two years. The year-over-year growth from FY23 to FY24 was 34.5%, accelerating revenue generation.

The profit after tax (PAT) figures underscore the company's dramatically improving profitability. The PAT rose from ₹70,962 lakhs in FY22 to ₹1,73,122 lakhs in FY24, representing an extraordinary growth of about 143.9% over two years. The year-over-year growth from FY23 to FY24 was 37.6%, showing that the company has not only maintained but accelerated its profit growth.
 

How to apply for Bajaj Housing Finance IPO?

To Open a DEMAT Account for free with 5paisa:

-    Enter your mobile number and email
-    Enter your PAN and bank details
-    Enter your Aadhar and link it via Digilocker
-    Take a selfie
-    Fill e-sign form
-    Start trading

To apply for IPO through 5paisa, you can follow these steps: 

1.    Log in to your 5paisa  account 
2.    Go to the IPO section and select the IPO you want to invest in 
3.    Enter the number of lots and price you want to apply for 
4.    Enter your UPI ID 
5.    Review your details and click Submit 
6.    Approve the UPI notification on your phone 

After you submit your bid, the exchange will approve it and you'll receive a notification to block funds in your UPI app. Once you approve the block request, the required amount will be deducted from your bank account. If your application is successful, shares will be credited to your Demat account on the allotment date. 

Note: This Article is intended solely for educational purposes. The securities referenced are provided as examples and do not constitute recommendations. The content is derived from various secondary online sources and may be subject to change. It is advisable to consult a professional expert before making any related decisions.