Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Review –
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) is set to open from 9th Sept Aug 2024 to 11th Sept 2024. This article will analyze the financials , strengths and weaknesses of the Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO). Keep scrolling below to read more!
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Overview –
Established in October 2008, Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans since the financial year 2018.
The company is part of the Bajaj Group, a diversified group of companies with interests in various sectors. Bajaj Housing Finance provides customized financial solutions to individuals and corporates for the purchase and renovation of homes and commercial spaces. The company’s mortgage product range is comprehensive and includes (i) home loans, (ii) loan against property (LAP), (iii) lease rental concessions, and (iv) developer finance.
Company is the second-most profitable HFC in India in terms of returns on average equity and assets. After launching its mortgage operations, it developed the largest non-deposit-taking HFC (in terms of AUM) in India within seven years.
As of March 31, 2024, the company had 308,693 active customers, of which 81.7% were house loan customers.
The Company has a network of 215 branches in 174 locations throughout 20 states and three union territories, managed by 6 centralized retail loan review centers and 7 centralized loan processing centers.
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Synopsis-
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) is set to be open from 9th Sept 2024 to 11th Sept 2024, offering combination of fresh issue of 50.86 crore shares aggregating to Rs 3560 crores and offer for sale of 42.86 crore shares aggregating to Rs 3000 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Monday, September 16th 2024.
The total issue size of this IPO amounts to Rs. 6560 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 9th Sept 2024 |
| Closing Date | 11th Sept 2024 |
| Lot Size | 214 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 6,560 Cr |
| Fresh Issue | Rs. 3,560 Cr |
| IPO Price Range | Rs. 66 – 70 |
| Min. Investment | Rs. 14,980 |
| Offer for Sale (OFS) | Rs. 3,000 Cr |
| Employee Discount | N/A |
| Basis of Allotment | 12th Sept 2024 |
| Refunds | 13th Sept 2024 |
| Listing Date | 16th Sept 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Market Lot
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) minimum market lot is 214 shares with ₹14,980 application amount. The retail investors can apply up to 13 lots with 2340 shares or ₹194,220 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 214 | ₹14,980 |
| Retail Maximum | 13 | 2,782 | ₹194,740 |
| S-HNI Minimum | 14 | 2,996 | ₹209,720 |
| B-HNI Minimum | 67 | 14,338 | ₹1,003,660 |
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Book Running Lead Managers –
- Kotak Mahindra Capital Company Limited
- BofA Securities India Limited
- Axis Capital Limited
- Goldman Sachs (India) Securities Private Limited
- SBI Capital Markets Limited
- JM Financial Limited
- IIFL Securities Limited
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Registrar to the offer –
The registrar for the Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) is Kfin Technologies Limited . They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
- Augmenting their capital base to meet future business requirements of the Company towards onward lending
- General corporate purposes
Key Performance Indicator –
The market capitalization of Bajaj Housing Finance Limited is Rs 58297.03 Cr.
KPI as of March 31, 2024.
| Earning Per Share (EPS): Post IPO | ₹2.32 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | 30.2 |
| Return on Net Worth (RoNW): | 3.6% |
| PAT Margin(%) | N/A |
| Net Asset Value (NAV): | ₹18.2 per Equity Share |
Financial Status –
The company’s revenue grew by 34% and PAT increased by 38% during FYs ending 31 March 2024 and 31 March 2023
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 March 2024.
The total assets of the company are Rs.88,538.83 crore.
The company’s total revenue is over Rs.2,208.73 crore.
The company’s PAT is Rs.482.61 crore.
The net worth of the company is Rs.14,719.91 crore.
The company’s EBITDA is Rs.2,038.55 crore.
| Particulars(in Rs. Crores) | 30 JUNE 24 | 31 MAR 24 | 31 MAR 23 | 31 MAR 22 |
|---|---|---|---|---|
| Revenue From Operations | 2,208.73 | 7,617.71 | 5,665.44 | 3,767.13 |
| PAT | 482.61 | 1,731.22 | 1,257.8 | 709.62 |
| Net Worth | 14,719.91 | 12,233.5 | 10,503.19 | 6,741.36 |
| Total Assets | 88,538.83 | 81,827.09 | 64,654.14 | 48,527.08 |
| Reserves and Surplus | 4,252.83 | 5520.81 | 3791.03 | 91.08 |
Valuation of P/E Ratio :
The P/E Ratio of Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) is 26.92
Comparative Analysis with Listed Peers :
The average P/E Ratio of the industry is 20x.
The P/E ratio of Bajaj Housing Finance IPO (26.92x), as compared with the industry’s average P/E of 20x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) –
Bajaj Housing Finance Limited peer comparison with similar listed entities.
| Company Name | EPS | NAV (per share) (Rs) | P/E (x) | RoNW (%) | Financial statements |
|---|---|---|---|---|---|
| Bajaj Housing Finance Limited | 2.6 | 18.2 | 15.2 | ||
| Lic Housing Finance Ltd. | 86.5 | 572.3 | 7.3 | 16.2 | Consolidated |
| Pnb Housing Finance Ltd | 58.4 | 576.6 | 12.4 | 11.6 | Consolidated |
| Can Fin Homes Ltd. | 56.4 | 326.2 | 12.9 | 18.8 | Consolidated |
| Aadhar Housing Finance Limited | 18.4 | 104.3 | 18.7 | 18.4 | Consolidated |
| Aavas Financiers Ltd | 61.9 | 476.8 | 25.8 | 13.9 | Consolidated |
| Aptus Value Housing Finance India Limited | 12.2 | 75.5 | 24.6 | 17.2 | Consolidated |
| Home First Finance Company India Ltd | 33.7 | 239.7 | 24.3 | 15.5 | Consolidated |
Note: The above comparison of listed peers is as per data by 31 March 2024.
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Strengths –
- The ‘Bajaj’ brand has a remarkable history and is well-known for being a dependable retail brand with significant brand equity.
- With a track record of robust development driven by a diverse portfolio, it is the second-largest HFC in India based on AUM.
- Its omnichannel sourcing strategy and customer-focused digitization initiatives are the driving forces behind its strategic presence and technological expertise.
- In Fiscal 2024, it had the lowest GNPA and NNPA among its peers.
- It has access to a variety of affordable and flexible funding sources.
- Its ability to draw in and keep bright personnel is supported by a group of committed professionals who work with its seasoned management team
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Weakness –
- Its business, operational results, cash flows, and financial situation could all suffer if it is unable to swiftly or completely recover the full value of the collateral or the amounts owed from defaulted loans.
- Its financial situation and operational outcomes may suffer if it is unable to maintain sufficient provisioning coverage, effectively manage the amount of gross non-performing assets/stage 3 assets in its portfolio, or if regulator-mandated provisioning requirements change.
- Its business, operating results, cash flows, and financial health might all suffer materially if the company is unable to meet the Reserve Bank of India’s standards.
- Since the majority of its assets are managed in 4 states and the UT of New Delhi, any unfavorable events in these areas could harm its operations, cash flows, and financial health.
- Due to the substantial real estate exposure in its portfolio, any notable downturn or unfavorable event in the real estate market might raise impairment losses.
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) Status
Baazar Style Retail Limited IPO (Baazar Style Retail IPO) allotment status will be available on Kfin Technologies Limited’s website.
Click on Link Kfin Technologies IPO weblink to get allotment status.
Bajaj Housing Finance Limited IPO (Bajaj Housing Finance IPO) GMP Today –
IPO’s last GMP is ₹51, last updated 7th Sept 2024. With the price band of 70.00, IPO’s estimated listing price is ₹121(cap price + today’s GMP). The expected percentage gain/loss per share is 72.86%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
