Introduction

Bajaj Housing Finance Limited (BHFL) has launched its Initial Public Offering (IPO) with a total issue size of ₹6,560 crore. The offering includes a fresh issue of 50.86 crore shares worth ₹3,560 crore and an Offer for Sale (OFS) of 42.86 crore shares aggregating to ₹3,000 crore.

The IPO opens for subscription on September 9, 2024, and closes on September 11, 2024, with the allotment expected on September 12, 2024. The listing date is tentatively set for September 16, 2024, on BSE and NSE.

IPO Schedule:

• Opens: September 9, 2024
• Closes: September 11, 2024
• Allotment Date: September 12, 2024
• Listing Date: September 16, 2024

IPO Details:

• Price Band: ₹66 to ₹70 per share
• Face Value: ₹10 per share
• Lot Size: 214 shares
• Total Issue Size: ₹6,560 crore (937,142,858 shares)
• Fresh Issue: ₹3,560 crore (508,571,429 shares)
• OFS: ₹3,000 crore (428,571,429 shares)

Promoter Holding:

• Pre-Issue: 100% held by Bajaj Finance Limited and Bajaj Finserv Limited
• Post-Issue: [Data not available]
   

Company Overview

Founded in 2008, Bajaj Housing Finance is a prominent non-deposit-taking Housing Finance Company (HFC) that offers a wide range of mortgage loans, including home loans, loans against property (LAP), rent concessions, and developer finance. It has 308,693 active customers and a network of 215 branches across 20 states and 3 union territories as of March 31, 2024.

Key Financials (as of March 31, 2024):

• Total Assets: ₹88,538.83 crore
• Revenue: ₹7,617.71 crore (34% increase YoY)
• Profit After Tax (PAT): ₹1,731.22 crore (38% increase YoY)
• Net Worth: ₹14,719.91 crore
• Debt/Equity Ratio: 5.7
• RoNW: 3.6%
• P/BV: 3.72

Key Objectives of the IPO The net proceeds from the IPO will be utilized to:

Augment the company’s capital base to meet future business growth and lending needs.
Conclusion

Bajaj Housing Finance’s IPO provides an opportunity for investors to participate in the growth of a leading housing finance company backed by the reputable Bajaj Group. With a robust financial performance and expanding customer base, the IPO could attract significant interest from retail and institutional investors alike.