Schedule of Bajaj Housing Finance
| Issue open date | 09 Sep 2024 |
| Issue close date | 11 Sep 2024 |
| UPI mandate deadline | 11 Sep 2024 (5 PM) |
| Allotment finalization | 12 Sep 2024 |
| Refund initiation | 13 Sep 2024 |
| Share credit | 13 Sep 2024 |
| Listing date | 16 Sep 2024 |
| Mandate end date | 26 Sep 2024 |
| Lock-in end date for anchor investors (50%) | 12 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 11 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Bajaj Housing Finance
Bajaj Housing Finance, a non-deposit-taking Housing Finance Company (HFC), has been part of the Bajaj group since 2008. Registered with the National Housing Bank in 2015, the company began offering mortgage loans in 2018. It provides tailored financial solutions for both individuals and businesses, focusing on home and commercial property purchases and renovations.
The company’s mortgage products include home loans, loans against property (LAP), lease rental discounting, and developer financing. As of March 31, 2024, Bajaj Housing Finance served 308,693 active customers, with 81.7% being home loan clients. The company operates 215 branches across 174 locations in 20 states and three union territories. It manages loan approvals through six centralized underwriting hubs and seven processing hubs.
Financials of Bajaj Housing Finance
IPO Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹6560 crores |
| Fresh Issue | ₹3560 crores |
| Offer for sale | ₹3000 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Building capital base to meet future business requirements | 3560 (100%) |
Strengths of Bajaj Housing Finance
- The Company belongs to the Bajaj group, a prominent Indian conglomerate known for its diverse business interests across various sectors. As a wholly-owned subsidiary of Bajaj Finance Limited, the company is well-positioned to tap into its extensive experience in scaling financial services.
- The company is the second largest HFC in India (in terms of AUM) having demonstrated a consistent growth trajectory with a diversified portfolio over its seven-year operational history, even amid challenging events such as the NBFC crisis, the downturn of key industry players and the unprecedented impacts of COVID-19.
- It is the largest non-deposit-taking HFC (in terms of AUM) in India within seven years of commencing mortgage operations.
- It is the second most profit-making HFC in India with a strong return on average assets and return on average equity for Fiscal 2024 and three months ended June 30, 2024.
- It has the lowest GNPA ratio of 0.28% and NNPA ratio of 0.11%, among large HFCs in India.
- The company’s strategic focus is on low-risk and fast-growing home loan customers. As of March 31, 2024, home loans contributed 57.8% of its AUM, of which 87.5% pertained to salaried customers, 4.3% to self-employed professional customers, and 8.2% to self-employed non-professional customers.
Risks of Bajaj Housing Finance
- The company may be impacted by volatility in interest rates, which could cause its Net Interest Income, Net Interest Margins, and the value of fixed income portfolio to decline and adversely affect the business, results of operations, cash flows, and financial condition.
- The company may face potential liquidity risks due to mismatches in the maturity of its assets and liabilities. Such mismatches, where the maturity of assets and liabilities do not match, are a key financial risk typical for a company in the business of lending.
- The Company is significantly exposed to real estate and any significant downturn or any adverse developments in the real estate sector may lead to an increase in impairment losses and adversely affect the business.