Bajaj Housing Finance IPO Overview
Bajaj Housing Finance, a non-deposit-taking NBFC from the renowned Bajaj Group, has launched an Initial Public Offering (IPO) that has garnered significant interest from investors. The IPO opened with a robust response, with different categories of applicants filling their portions, except for employees, by the end of the first day. Within just two days, the overall subscription exceeded 7 times, indicating a strong demand for shares.
Current Subscription Status
The subscription figures showcase a staggering interest level across various investor categories:
| Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIB) | 7.46 times |
| Non-Institutional Investors (NII) | 16.46 times |
| Retail Investors | 3.84 times |
| Employees | 0.97 times |
| Shareholders | 9.55 times |
| Total | 7.51 times |
Maximizing Allotment Chances
To enhance your chances of securing shares in this oversubscribed IPO, investors are advised to explore various application quotas. The IPO, amounting to ₹6,560 crore, allocates ₹500 crore specifically for existing shareholders of Bajaj Finance and Bajaj Finserv. Thus, if you hold shares in either company, you can apply from the shareholder quota. For example:
- Apply for one lot under the shareholder quota.
- Apply for another lot under the retail investors’ quota.
- If you wish, consider applying additionally under the Non-Institutional Investor (NII) category if your investment is over ₹2 lakh.
This strategy allows you to apply across three different categories, subsequently increasing your odds of share allotment.
Details of the Bajaj Housing Finance IPO
The Bajaj Housing Finance IPO is priced within a range of ₹66-₹70, and investors can subscribe in multiples of 214 shares. Share allotments will be finalized on September 12, with trading expected to commence on both the BSE and NSE by September 16. KFinTech is the designated registrar for the issue. The offering consists of new shares worth ₹3,560 crore and includes an Offer for Sale of 42,85,71,429 shares from its parent company, Bajaj Finance, whose proceeds will benefit the selling shareholders.
Company Background
Bajaj Housing Finance was established in 2008 and operates as a non-deposit-taking housing finance company (HFC), registered with the National Housing Bank (NHB) since 2015. With the RBI categorizing it as an ‘upper layer NBFC’, the firm has been mandated to launch its IPO within three years of its designated status, with the deadline approaching in September 2025.
Services and Operations
The company primarily offers a range of financial products, including home loans, loans against property (LAP), and financing for developers. As of March 2024, it has catered to approximately 308,693 active customers, with home loans accounting for 81.7% of its clientele. The company has established a strong operational footprint with 215 branches deployed across 174 locations within 20 states and 3 union territories. Additionally, it has six centralized retail loan review centers and seven central loan processing centers to streamline operations.
Financial Performance
Bajaj Housing Finance has exhibited solid financial growth over the past few years. The net profit climbed from ₹709.62 crore in the financial year 2022 to ₹1,257.8 crore in financial year 2023, reaching ₹1,731.22 crore in financial year 2024. Correspondingly, the company’s revenue demonstrated a compound annual growth rate (CAGR) of over 42%, peaking at ₹7,617.71 crore. Notably, in the first quarter of the financial year 2024-25 (April to June 2024), the firm recorded a net profit of ₹482.61 crore and revenue of ₹2,208.73 crore.
Brokerage Insights and Market Sentiment
Brokerage firms like Swastik Investmart have released favorable assessments of the IPO. They highlight Bajaj Housing Finance’s sustainable sales and profit growth, bolstered by the reputable heritage of the Bajaj Group. The brokerage recommends subscribing to this IPO, viewing it favorably not only for potential listing gains but also as a worthwhile long-term investment.
Disclaimer: The information provided here represents the views of various experts and brokerage firms. Readers are encouraged to conduct their own research and consult certified advisors before making any investment choices.
