Bajaj Housing Finance IPO

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09th – 11th Sep 2024
16 Sep 2024
₹66 – ₹70
Lot size 214 — ₹14980
6560cr

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.