Bajaj Housing Finance is a non-deposit taking housing finance company, it primarily focuses on offering home loans, loan against property, lease rental discounting, and construction finance. crores. Bajaj Housing Finance IPO aims to raise up to Rs 6560 crore.
| IPO opens | September 9, 2024 |
| IPO Closes | September 11, 2024 |
| IPO Size (Rs.) | ₹ 6,560 Cr |
| Breakup | Fresh issue + OFS |
| Face Value: | ₹ 10 |
| IPO Price in Rs : | ₹66 to ₹70 per share |
| Minimum Lot | 214 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~50 % |
| NII Quota | ~15% |
| Retail Quota | ~35% |
| Lead Manager | Kotak Mahindra Capital, BofA Securities, SBI Capital Markets, Goldman Sachs ,JM Financial |
About Bajaj Housing Finance IPO :
- Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd and promoted by Bajaj Finance Limited and Bajaj Finserv Limited, has been an active player in the mortgage lending sector since fiscal 2018
- A non-deposit taking housing finance company, it primarily focuses on offering home loans, loan against property, lease rental discounting, and construction finance.
- Bajaj Housing Finance Limited is registered with the National Housing Bank (“NHB”) since September 24, 2015, and engaged in mortgage lending since Fiscal 2018.
- They been identified and categorized as an “Upper Layer” NBFC (“NBFC-UL”) in India by the RBI since September 30, 2022,
- They offer financial solutions tailored to individuals and corporate entities for the purchase and renovation of homes and commercial spaces.
- Their mortgage product suite is comprehensive and comprises (i) home loans; (ii) loans against property (iii) lease rental discounting; and (iv) developer financing.
Financials : Bajaj Housing Finance IPO
| Particulars / Rs. Cr | 2024(03) | 2023(03) | 2024(12) | 2023(12) | 2022(12) |
| AUM | 97,071.33 | 74,124.26 | 91,370.40 | 69,227.90 | 53,321.72 |
| AUM Growth (%) | 30.96 | – | 31.98% | 29.83% | – |
| Disbursements | 12,003.51 | 10,382.52 | 44,656.24 | 34,333.63 | 26,175.24 |
| Total Borrowings | 73,347.06 | 58,560.15 | 69,129.32 | 53,745.39 | 41,492.32 |
| Revenue from Operations | 2,208.65 | 1,763.25 | 7,617.31 | 5,664.73 | 3,766.71 |
| Revenue Growth (%) | 25.26% | – | 34.47% | 50.39% | – |
| EBITDA | 2,038.55 | 1,598.08 | 6,893.53 | 4,944.78 | 3,140.93 |
| Net Profit | 482.61 | 461.8 | 1,731.22 | 1,257.80 | 709.62 |
| Net Profit (%) | 21.85% | 26.19% | 22.73% | 22.20% | 18.84% |
| NAV (₹) | 18.8 | 16.3 | 18.2 | 15.6 | 13.8 |
| Return on Equity (%) | 14.30% | 17.20% | 15.20% | 14.60% | 11.10% |
| NIM (%) | 3.90% | 4.40% | 4.10% | 4.50% | 4.00% |
| IPO Price Rs. | 70 | ||||
| P/BV | 3.2 | ||||
| PE Fy25 (ann) | 30.17 |
Anchor: Bajaj Housing Finance IPO
Anchor investors include names like Government of Singapore, Abu Dhabi Investment Authority, Fidelity, Morgan Stanley, Nomura, Goldman Sachs, JP Morgan India Investment Trust Plc, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC MF, Kotak Mahindra MF, SBI MF, UTI MF and Nippon India MF.
Salient Points: Bajaj Housing Finance IPO
- Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
- “Bajaj” brand, has good recognition as a reliable retail brand with strong brand equity.
- 2nd largest HFC in India (in terms of AUM) with a track record of strong growth driven by a diversified portfolio;
- Posted AUM growth of 37% in FY22, 30% (FY23), 32% (FY24) and 31% (Q1-FY25).
- As at June 30, 2024, their AUM were ₹97,071.33 crore.
- Company’s strategic focus is on low risk and fast-growing home loan customers
- On March 31, 2024, home loans contributed 57.8% of their AUM, of which 87.5% pertained to salaried customers and 4.3% pertained to self-employed professional customers and 8.2% self-employed non-professional customers.
- The average ticket size of the home loans was ₹0.46 crore.
- Net NPAs of the company stood at 0.11% as of June 30, 2024 . They were 0.10% as of March 31, 2024.
- On June 30, 2024, they had 323,881 active customers, 83.2% of whom were home loan customers.
- Their overall loan disbursements were ₹44,656.24 crore, ₹34,333.63 crore in FY 24. ,
- Strategic presence with omni-channel sourcing strategy, driven by customer-focused digitization initiatives and technology;
- Between FY22 and FY24, the company recorded a Compound Annual Growth Rate (CAGR) of 44 per cent in interest income, 42 per cent in total income, and 56 per cent in net profit.
- Highest credit ratings for both the long-term as well as short-term borrowings.
- P/E ratio stands at ~ 30x. .
- I intend to apply in Bajaj Housing Finance IPO. The company could turn out to be good long term story apart from listing gains. Overall quite attractive offer and size of issue if large.
- GMP as reported on social media has been Rs. 55 (80%)
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.