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About Bajaj Housing IPO
The Bajaj Housing Finance IPO is Rs 6,560.00 crores in size. The IPO is a book-built issue and comprises a fresh issue of 50.86 crore equity shares aggregating Rs 3,560.00 crores and an offer for sale of 42.86 crore equity shares aggregating Rs 3,000.00 crores.
The subscription for the Bajaj Housing Finance IPO opens on September 9, 2024, and will remain open till September 11, 2024. The allotment of Bajaj Housing Finance IPO is expected to take place on Thursday, September 12, 2024. It will be listed on BSE and NSE on Monday, September 16, 2024.
The price band for the Bajaj Housing Finance IPO ranges from Rs 66 to Rs 70 per share. The Minimum application lot size of 214 shares, and hence a minimum investment of ₹14,980 by retail category investors will be required. Similarly, Small Non-Institutional Investors need to invest in at least 14 lots or 2,996 shares amounting to Rs 209,720 and Big Non-Institutional Investors, 67 lots or 14,338 shares amounting to Rs 10,03,660.
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 of the Bajaj Housing Finance IPO. KFin Technologies Limited is the registrar for this issue.
Bajaj Housing Finance IPO Details:
| Particulars | Details |
| IPO Date | 09-09-2024 TO 11-09-204 |
| Bajaj Housing Finance Face Value | Rs 10 per share |
| Price Band | Rs 66 to Rs 70 per share |
| Bajaj Housing Finance Lot Size | 214 Shares |
| Total Issue Size | 93,71,42,858 shares (aggregating up to Rs 6,560.00 Cr) |
| Fresh Issue | 5,08,571,429 shares (aggregating up to Rs 3,560.00 Cr) |
| Offer for Sale | 4,28,571,429 shares of Rs 10 (aggregating up to Rs 3,000.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Bajaj Housing Finance Listing At | BSE, NSE |
| Shareholding pre-issue | 7,81,95,75,273 |
| Shareholding post-issue | 8,32,81,46,702 |
Bajaj Housing IPO Tentative Schedules:
| Particulars | Details |
| Bajaj Housing Finance IPO Open Date | Monday, September 9, 2024 |
| Bajaj Housing Finance IPO Close Date | Wednesday, September 11, 2024 |
| Basis of Allotment | Thursday, September 12, 2024 |
| Initiation of Refunds | Friday, September 13, 2024 |
| The credit of Shares to Demat | Friday, September 13, 2024 |
| Bajaj Housing Finance Listing Date | Monday, September 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 11, 2024 |
Investors’ Category & Shares Offered In Bajaj Housing Finance IPO:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Bajaj Housing Finance Lot size, Shares Offered And Their Value
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 214 | Rs 14,980 |
| Retail (Max) | 13 | 2782 | Rs 1,94,740 |
| S-HNI (Min) | 14 | 2,996 | Rs 2,09,720 |
| S-HNI (Max) | 66 | 14,124 | Rs 9,88,680 |
| B-HNI (Min) | 67 | 14,338 | Rs 10,03,660 |
Bajaj Housing Finance IPO GMP:
This is the latest information available as of the last update on September 11th, 2024 at 09:57 AM. The grey market premium (GMP) for the Bajaj Housing Finance IPO is ₹69. The price band of the IPO is ₹66-70.00 per share. Hence, the estimated listing price of Bajaj Housing Finance IPO is ₹125.5, as arrived at by adding the cap price and today’s GMP.
This would translate into an expected EPS gain/loss of 79.29%. The Retail Subject to Sauda for Bajaj Housing Finance IPO is Rs 9,000, while the Small high net-worth individual (HNI) Subject to Sauda is Rs 1,26,000.
Bajaj Housing Finance Company Details:
Bajaj Housing Finance Limited (BHFL) is a wholly owned subsidiary of Bajaj Finance Limited and has been categorized as an ‘Upper-Layer Non-Banking Financial Company (NBFC) under Scale-Based Regulations’ by the RBI.
BHFL is considered one of the most diversified NBFCs in the Indian market, having catered its services to more than 88.11 million customers across the country.
Based in Pune, BHFL offers a range of loan facilities both to individuals and corporate bodies needing finance for buying or renovation of residential or commercial property. It grants loans against property for personal or business needs and provides working capital for business expansion purposes.
The company also offers finance to developers constructing residential and commercial real estate. Besides that, lease rental discounting is offered to developers and high net worth individuals.
The company has been awarded the rating of AAA/Stable for the long-term debt program by CRISIL and India Ratings. It has -also been accorded a rating of A1+ for the short-term debt program.
Financials of Bajaj Housing Finance:
| Period Ended | 30-Jun-24 | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets (Rs in crores) | 88,538.83 | 81,827.09 | 64,654.14 | 48,527.08 |
| Revenue (Rs in crores) | 2,208.73 | 7,617.71 | 5,665.44 | 3,767.13 |
| Profit After Tax (Rs in crores) | 482.61 | 1,731.22 | 1,257.80 | 709.62 |
| Net Worth (Rs in crores) | 14,719.91 | 12,233.50 | 10,503.19 | 6,741.36 |
| Reserves and Surplus (Rs in crores) | 4,252.83 | 5,520.81 | 3,791.03 | 1,858.03 |
| Total Borrowing (Rs in crores) | 73,347.06 | 69,129.32 | 53,745.39 | 41,492.32 |
Bajaj Housing Finance KPIs
| Key performance indicator (KPI) as of June 30, 2024 | Values |
| Return on net worth (RoNW) | 3.60% |
| Price to book value (P/BV) | 3.72 |
Bajaj Housing Finance IPO RHP – associated risks
1) Internal risks related to collateral securities provided by the Loan takers or its customers
The portfolio consists of mortgages as the main security for home loans, loans against property, lease rental discounting, and developer financing. The loan portfolio is exposed to the events affecting the real estate sector due to price changes, the level of disposable income available with the customers, and RBI monetary policy rates.
Prices of real estate may go down and so may the liquidity risk in case of mortgages as reduced property price may make the realization possibilities of the full value of loan collaterals affected.
2) Macroeconomic factor-related risks
There are many factors such as macro-economic conditions and undesirable changes in regulations, customer-specific issues, and the rise in Gross Non-Performing Assets (GNPAs)/Stage 3 Assets which may hamper the quality of loan book, credit ratings, and cost of funds. A rise in GNPAs/Stage 3 Assets would also lead to a rise in provisions and thereby impact the business operation, cash flows, and financial condition negatively.
3) Risk regarding RBI compliances
The company is bound to follow the compliances initiated by RBI in India. The directives with respect to capital adequacy of Housing Finance Companies (HFCs), liquidity coverage, and Business criteria ratios, if sought by RBI from time to time, should be fulfilled by the company.
4) Legal proceeding risks
The Company may be involved in litigation arising from its business and may include proceedings against and by the Company. Such litigation includes but is not limited to:
(i) criminal litigation filed against the Company concerning charges such as forgery, higher fees and interest rates, document fabrication, and requests for the production of certain information and documents;
(ii) criminal litigation filed by the Company;
(iii) civil litigation;
(iv) tax proceedings;
(v) criminal complaints filed by the Company under the Negotiable Instruments Act, 1881; and
(vi) applications under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”), wherein we contest assiduously against actions taken by the company towards enforcement of security interests.
Such legal disputes that may arise in the future, if not handled properly, might bring adversities.
Frequently Asked Questions
What are the objectives of the Bajaj Housing Finance IPO?
The objectives of the issue by Bajaj Housing Finance inter-alia, are to utilise the net proceeds for expanding its capital base to achieve additional business growth needs including onward lending, and to invest in subsidiary/associate companies, and settlement of the Shareholders Reservation Portion up to Rs. 5,000 million.
When will the Bajaj Housing Finance IPO commence?
The IPO of Bajaj Housing Finance will open for subscription on September 9, 2024.
When will the subscription period for Bajaj Housing Finance close?
The subscription period will be closed on September 11, 2024.
Which is the parent company of Bajaj Housing Finance Limited?
The parent company of Bajaj Housing Finance Limited is Bajaj Finance Limited.
How much is the total book-built issue of Bajaj Housing Finance IPO?
The total book-built issue of Bajaj Housing Finance IPO issue is ₹ 6,560 crores.
From where you can download the offer-related documents of Bajaj Housing Finance IPO?
Offering documents of Bajaj Housing Finance IPO available on the official site of SEBI. Below links will redirect you to the SEBI’s website.
a) Draft Red Herring Prospectus (DRHP)
b) Red Herring Prospectus (RHP)
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