The Bajaj Group company is offering its shares in the region of Rs 66-70 apiece, with a lot size of 214 equity shares. The opening and closing dates for the IPO of Bajaj Housing Finance for bidding are September 9 and 11.
On Monday, September 9, the bidding for IPO of the Bajaj Housing Finance begins. The subscription to Bajaj Housing Finance IPO is open till Wednesday, September 11th, at a listing price of Rs 66–70. Investors may submit applications for up to 214 equity shares, plus their multiples.
About Bajaj Housing Finance
Having been founded in 2008, Bajaj Housing Financing is a housing financing company (HFC) that does not require deposits and has been registered with the National Housing Bank (NHB) since 2015. Since the 2018 financial year, the company has been providing mortgage loans. It is a member of the Bajaj Group, an eclectic collection of businesses with a range of industry interests.
With the help of its promoter Bajaj Finance and a new share sale valued at Rs 3,560 crore, Bajaj Housing Finance hopes to collect a total of Rs 6,560 crore valuation through its IPO. The company plans to utilize the net proceeds from the offering to augment its capital base, which is essential for meeting its upcoming lending requirements.
Bajaj Housing Finance has raised Rs 1,758 crore from key 104 investors before its first public offering by offering them 25,11,42,856 equity shares for Rs 70 each. Its anchor book includes names like the Government of Singapore, New World Fund Inc., ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, JP Morgan, and a host of domestic insurance and mutual fund providers.
Bajaj Housing Finance Products
Bajaj Housing Finance provides both individuals and businesses with specialized financing options for the purchase and renovation of residential and commercial properties. It offers a wide range of mortgage products, such as developer financing, home loans, loans secured by real estate, and rent reductions.
As of March 31, 2024, Bajaj Housing Finance has 308,693 active customers, of which 81.7% were house loan customers. Under the direction of six centralized retail loan review centers and seven centralized loan processing centers, the company has a network of 215 branches spread across 174 locations in 20 states and three union territories.
While Bajaj Finance and Bajaj Finserv qualified shareholders have reserved shares worth Rs 500 crore, Bajaj Housing Finance has allotted shares worth Rs 200 crore to the company’s qualifying employees. Qualified institutional bidders will receive 50% of the net offer shares, while retail investors and NII will receive 35% and 15% of the offer, respectively.
Bajaj Housing Finance Performance
For the three months that ended on June 30, 2024, Bajaj Housing Finance reported revenue of Rs 2,208.73 crore and a net profit of Rs 482.61 crore. For the fiscal year that concluded on March 31, 2024, it generated revenue of Rs 7,617.71 crore and a net profit of Rs 1,731.22 crore.
The Bajaj Housing Finance IPO’s book-running lead managers are Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities. The issue’s registrar is Kfin Technologies.
On September 16, Monday is the listing date of the IPO of Bajaj Housing Finance on the BSE and NSE. Grey market trends indicate that shares of Bajaj Housing Finance are trading at a premium of Rs 55-57 a share, which implies an upside potential of more than 80% relative to the issue price.
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