Bajaj Housing Finance, a registered HFC with the National Housing Bank, provides financing for the purchase, renovation, and loan against property needs of both individuals and corporate entities.
Additionally, it offers financing for developers constructing residential and commercial properties as well as rental discounting for developers and HNIs. The company is gearing up to launch its IPO from 9th to 11th September 2024. This strategic move will bolster its capital base and pave the way for future growth. Read on to discover more about this upcoming IPO.
Objectives of the IPO
Bajaj Housing Finance intends to use the net proceeds of the IPO to strengthen its financial position and support future business growth.
Bajaj Housing Finance IPO Details
| Bidding Start Date | 9th September 2024 |
| Bidding End Date | 11th September 2024 |
| Tentative Listing Date | 16th September 2024 |
| Lot Size | 214 shares |
| Price Band Per Share | ₹66 to ₹70 |
| Total Issue Size | ₹6,560 Crore |
| Fresh Issue Size | ₹3,560 Crore |
| Offer For Sale | ₹3,000 Crore |
| Listed On | National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) |
Restated Financial Information Summary
Over the past three financial years, the company’s performance has demonstrated significant growth. As of March 31st, 2024, its equity share capital was ₹67,121.6 Cr. and other equity was ₹55,213.4 Cr., resulting in a net worth of ₹1,22,335.0 Cr. This represents an increase from the previous year’s net worth of ₹1,05,031.9 Cr. and a substantial rise from ₹67,413.6 Cr. in March 2022.
In 2024, the profit for the year rose to ₹17,312.2 Cr., compared to just ₹7,096.2 Cr. in 2022. Additionally, the net asset value per equity share increased to ₹18.2 from ₹15.6 in the previous year and ₹13.8 two years ago.
Company Strengths
Bajaj Housing Finance benefits from the following strengths
- Bajaj Housing Finance benefits from the strong brand equity of the “Bajaj” brand, which is widely recognised as a reliable retail name.
- Ranked as the second-largest HFC in India by AUM, driven by a diversified portfolio and strong growth track record.
- Strategic presence with an omnichannel sourcing approach, enhanced by customer-focused digitisation and technology initiatives.
- Well-defined credit evaluation and risk management practices, resulting in the lowest GNPA and NNPA among peers in Fiscal 2024.
- Access to diversified and cost-effective borrowing sources, supported by top-tier credit ratings from rating agencies.
- Experienced management team complemented by a skilled workforce and the ability to attract and retain talent.
How can you invest in Bajaj Housing Finance’s IPO with HDFC Sky’s One-click IPO feature?
You can conveniently invest in upcoming IPOs with HDFC Sky’s One-Click IPO feature. To apply, you need a trading account with HDFC Sky. Here’s how you can apply:
- Launch the app and navigate to ‘Menu’.
- Under ‘Indian Stocks’, tap on ‘IPO’. All the IPOs currently accepting applications will be listed under the ‘OPEN’ section.
- Select the Bajaj Housing Finance IPO.
- Review the IPO details and tap on ‘Apply for IPO’.
- Enter the number of shares and place a custom bid price.
- After placing the bid, select ‘Proceed to Pay’.
- Enter the UPI ID linked to the registered bank account.
- Open the UPI app and accept the mandate request within the cut-off time.
A confirmation will be displayed on the screen upon successful IPO application. To track your IPO application, go to Menu > Indian Stocks > IPO > Applied.
Conclusion
The Bajaj Housing Finance IPO presents a compelling opportunity for investors looking to invest in a growing housing finance company with a strong financial track record. The upcoming IPO helps the company strengthen its capital base and allows investors to gain early access to a growing sector. Additionally, through HDFC Sky’s One-Click IPO feature, you can seamlessly participate in this offering with a few simple steps.
HDFC Sky is a stock trading app from HDFC Securities. The app allows you to invest in the stock market through buying and selling shares, mutual fund investments, futures and options trading, and more. You can register on the app using your mobile number and open a Demat and Trading Account.
