Bajaj Housing Finance IPO Highlights: Bajaj Housing Finance stock closed on a high on day 1 of trading after a stellar debute on both NSE and BSE. The stock listed on both exchanges at a triple digit premium to the issue price. The company’s Rs 6,560 crore IPO opened for public subscription on September 9 and closed on September 11. The price band for the issue is set between Rs 66-70 per share. The IPO features a fresh issue of equity shares valued up to Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore by parent company Bajaj Finance. The proceeds from the fresh issue are allocated for enhancing the company’s capital base to meet future capital needs. The book-running lead managers are Kotak Mahindra Capital Company, BoFA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities. Kfin Technologies is handling the role of registrar for the IPO.
Bajaj Housing Finance IPO 2024 Highlights: Listing Date, KFintech, Allotment Status, GMP live
Bajaj Housing Finance boasts a strong credit bureau score for its salaried clients. In FY24, household loans made up 58% of its Assets Under Management (AUM), with 88% of borrowers being salaried individuals, 4% self-employed professionals, and 8% self-employed non-professionals. As of Q1 FY25, the average home loan ticket size stood at Rs 4.6 million, with an average loan-to-value ratio of 69%.
Bajaj Housing Finance leverages the strong heritage of the renowned "Bajaj" brand, known for its widespread reputation as a trustworthy retail brand. The company’s robust risk management framework has been key in maintaining stable asset quality. Bajaj Housing Finance remains confident in sustaining a stable net interest margin (NIM) through borrowing cost optimization and has projected a leverage ratio of approximately 6x to 8x. With the IPO fairly priced at 3x FY25 price-to-book value (on a diluted basis), the issue appears attractive. Given these strengths, a "Subscribe" recommendation is advised.
The company is concentrating on mid-tier residential real estate projects, covering both new developments and redevelopment segments in the suburban Mumbai MMR region. Despite the capital-intensive nature of the sector, the company maintains minimal long-term borrowings, financing projects primarily through internal accruals and promoter equity, according to Anand Rathi.
Bajaj Housing Finance has reported an impressive growth rate of 30-32% CAGR over the past year, dominating the prime housing segment with a market share exceeding 20%. The company also leads in the salaried employees’ loan sector, holding an 85% share. Looking forward, Bajaj Housing Finance expects to sustain a similar growth trajectory of 30-35% YoY, significantly outpacing the industry average of approximately 13-14% YoY. "In summary, Bajaj Housing Finance is expanding at twice the rate of the industry's growth," stated Nipun Lodha, Director of Corporate Finance at PL Investment Banking – Prabhudas Lilladher.
Arkade Developer's Initial Public Offering (IPO) begins today and will remain open for bidding until September 19. The IPO is priced between Rs 121 and Rs 128 per equity share. Retail investors can apply for a minimum of 110 shares, equivalent to one lot, at a cost of Rs 14,080.
While long-term wealth accumulation typically requires skill and temperament, making money through an IPO often relies on luck due to the lottery-based allocation system.
The highly anticipated IPO of Bajaj Housing Finance has sparked significant investor excitement. The stock debuted at a remarkable 114% premium and gained an additional 9% following its initial listing.
The stock of Bajaj Housing Finance closes 10% higher on the upper circuit at Rs 165. The stock was opened at a price of Rs 150 on Monday, trading for the first time in the secondary market.
"We believe the company's rapid growth, driven by its strategic expansion into underserved Tier II and III cities in Maharashtra (western India) and a growing presence online through its e-commerce platform and mobile app, positions it well to capture future market opportunities. Post listing as gold is a long term investment PN GADGIL can also be considered to hold it for long term. Fresh buying can only be considered if there are any dips in future due to market," said Mehta Equities on PN Gadgil Jewellers IPO ahead of listing.
Arkade Developer's shares were attracting a grey market premium of almost 63%. The grey market is an illegal market where shares change hands, without regulation. The share allotment is likely to be finalised by September 20. The listing will likely be on NSE and BSE on September 24, as per the tentative schedule.
"Bajaj Housing Finance has experienced a remarkable growth rate of 30-32% CAGR over the past year. It holds the largest share in the prime housing segment, accounting for over 20%. Additionally, it enjoys an 85% share of the salaried employees' loan portfolio. Looking ahead, Bajaj Housing Finance anticipates maintaining a similar growth rate of around 30-35% YoY. This is notably higher compared to industry growth at approximately 13-14% YoY. In essence, Bajaj Housing Finance is expanding at double the rate of industry growth," said Nipun Lodha, Director - Corporate Finance, PL Investment Banking PL Capital - Prabhudas Lilladher.
Bajaj Housing Finance shares made a robust debut on September 16, listing at Rs 150 per share on both the NSE and BSE, representing a 114% premium over the IPO issue price of Rs 70. The shares were allotted to successful IPO bidders on September 13.
Listing gains of Rs 80 per share slightly exceeded the grey market premium, which was Rs 75 per share on the morning of September 16, according to several grey market tracking platforms.
Bajaj Housing Finance hits the upper circuit of 10%. The stock stopped trading and was frozen at Rs 165.
“The company is focused on mid-tier residential realty projects on both new and redevelopment segments in the suburban Mumbai MMR region. Despite being in the capital-intensive sector the company has very limited long-term borrowings since its projects are financed through internal accruals and promoter equity. Given these factors, the company’s exposure to a niche realty segment is well positioned against the most expensive real estate markets," said Anand Rathi Research in an IPO note.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, advises conservative investors to consider booking profits in Bajaj Housing Finance shares if listing gains exceed expectations. Conversely, long-term investors should maintain their positions due to the optimistic sector outlook and the company’s strong business model. “Given the overall attributes, we strongly recommend that long-term investors ‘hold’ for sustained growth,” Tapse stated.
Arkade Developer IPO opens today for bidding. The IPO will close on September 19. The company kept the IPO price band in a range of Rs 121 to Rs 128 per equity share. A retail investor needs to apply for a minimum of 110 shares or one lot that costs Rs 14,080.
"Post listing, we recommend conservative investors to choose profit booking, as the listing gain is over and above our expectations, while long-term investors can continue holding for long-term growth as the sector outlook remains very optimistic given the company's well-positioned business model. We believe housing as a sector will continue to deliver and perform well in the next 3-4 years and Bajaj Housing can tap the opportunity to lead the sector," said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
Shares of Bajaj Housing Finance rose 7.3% to an intraday high of Rs 161. The issue was opened at Rs 150. The company kept the IPO price band in a range of Rs 66 to Rs 70 per equity share.
Bajaj Housing Finance benefits from the distinguished heritage of the “Bajaj” brand, which enjoys widespread recognition as a reliable retail brand. It has a strong risk management framework which helps it to maintain stable asset quality. BHF is confident of maintaining stable NIM through borrowing cost optimization & has guided for a leverage ratio of ~6x-8x. The IPO is fairly priced at 3x FY25 P/BV (on diluted basis). Given all the positives, recommend Subscribe to the issue.
The IPO gave a triple-digit listing gain as soon as it hit the secondary market. Bajaj Housing Finance lists at 114% premium to the issue price, Rs 70. The stock was listed at a price of Rs 150 in the NSE.
Kross IPO makes a flat debut on bourses, NSE and BSE, on September 16. The stock hit the secondary market alongside Bajaj Housing Finance. The stock was listed at Rs 240 per equity share on the National Stock Exchange.
Tata Technologies set the previous record with bids over Rs 1.5 lakh crore for its Rs 3,000 crore initial public offering. The first Tata Group company to go public in almost 20 years, Tata Technologies, has set a price range of Rs 475–500 per share for its initial public offering.
Breaking all previous records, the much-awaited Bajaj Housing Finance IPO attracted bids above Rs 3.2 lakh billion. The company wanted to sell new equity and make an offer for sale (OFS) in order to raise about Rs 6,560 crore. The initial public offering (IPO) saw 63.6 subscriptions at its conclusion, indicating strong demand, especially from non-institutional investors, whose category saw over 200 subscriptions.
The allotment status can be checked on the website of registrar of the issue, Kfin Technologies.
A total of 67.43 times more shares were subscribed to for the IPO than were actually offered. The company was offered Rs 3.23 lakh crore in bids. Of which, offers for Rs 15,195.36 crore were received from retail investors. A total of 7.4 times were reservations made for the retail segment.
For salaried clients, Bajaj Housing Finance has a high credit bureau score. Household loans accounted for 58 per cent of the Assets Under Management in FY 24. 88 per cent of the consumers were salaried, four per cent were self-employed professionals and eight per cent were self-employed non-professionals. As of Q1FY25, the average home loan ticket size was Rs 4.6 million, and the average loan-to-value ratio was 69 per cent.
The total amount of the IPO that was issued was Rs 6,560 crores. The promoters' offer for sale (OFS) was for Rs 3000 crores, while the fresh issuance was for Rs 3,560 crores. Bajaj Finserv and Bajaj Finance each received a 500 crore rupee shareholder quota from the offering.
Prior to the IPO launch, notable investors including JP Morgan, Morgan Stanley, Nomura and HDFC Mutual Fund contributed a total of Rs 1,758 crores to Bajaj Housing Finance. The entire amount of money raised from investors and the general public will be used to strengthen the company's financial foundation and meet its ongoing operational demands, primarily lending needs.
1. Visit the official website of NSE at https://www1.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp
2. On the homepage, choose ‘Click here to sign up’ option to register with PAN
3. Insert your password, user name and captcha code
4. On the next page, check the status of your IPO allocation
1. Visit the BSE official website’s allotment page at https://www.bseindia.com/investors/appli_check.aspx
2. On the homepage, choose ‘Equity’ under ‘Issue Type’
3. Select ‘Issue Name’ (the drop-down menu) and select the IPO
4. Insert your application number or PAN