Bajaj Housing Finance IPO Highlights: Bajaj Housing Finance IPO will likely be listed on NSE and BSE on September 16. The Initial Public Offering (IPO) opened on September 9 and continued till September 11, 2024. With shares priced between Rs 66 and Rs 70, this IPO presents an attractive opportunity for investors. The issue includes a minimum bid lot size of 214 shares and aims to raise Rs 7,000 crore, with Rs 4,000 crore from fresh equity and Rs 3,000 crore from existing shareholders’ sales. The company’s shares were fetching a premium of more than 105% in the grey market.
Bajaj Housing Finance IPO 2024 Highlights: See Listing Date, KFintech Allotment Status, and GMP live
The Bajaj Housing Finance initial public offering (IPO) achieved the highest subscription rate in India‘s history, with a total bid value of Rs 3.24 lakh crore, which exceeded one per cent of the country’s GDP. As per the data by NSO, India’s nominal GDP at constant prices is estimated at Rs 295.36 lakh crore in 2023–24.
The shares will be listed by Bajaj Housing Finance at 10 AM on Monday, September 16 on both BSE and NSE.
1. Visit the Bajaj Housing Finance IPO allotment link at https://ris.kfintech.com/ipostatus/
2. Select one of the five available URLs on the homepage
3. Choose Bajaj Housing Finance IPO from ‘Select IPO’ drop-down option
4. Insert your PAN, Demat account number or application number
5. Enter application number/ Demat account information/ PAN number
6. Enter captcha code and click on ‘Submit’
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
Bajaj Housing Finance IPO raised Rs 1,758 crores through Anchor Investors. A total of 251,142,856 shares were offered. The end date for the lock-in period of 50 per cent share (30 days) is October 12, 2024. The end date of the lock-in period for the remaining share (90 Days) is December 11, 2024.
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
93,71,42,865 shares are available in the Bajaj Housing Finance IPO. The following amounts were given: 16,74,28,580 (17.87%) to Qualified Institutions; 12,55,71,430 (13.4%) to High Net Worth Individuals; 29,30,00,000 (31.27%) to Retail Investors; 2,85,71,428 (3.05%) to staff; and 25,11,42,856 (26.8%) to Anchor investors.
The Bajaj Housing Finance IPO‘s last GMP was Rs 80.50 till 5:32 PM on September 13, 2024. The lowest GMP the IPO witnessed was Rs 36 and the highest is Rs 80. The IPO’s estimated listing price is Rs 150.5 which includes the cap price and today’s GMP. As per the data mentioned above the expected gain or loss per share is 115 per cent.
In the Bajaj Housing Finance IPO, 937,142,865 equity shares were issued to the public. Retail investors were offered 293,000,000 shares from the issuance, institutional buyers got 167,428,580 shares, and non-institutional investors could purchase 125,571,430 shares. The employees were offered 28,571,428 shares.
The prominent investors such as JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund invested Rs 1,758 crores in Bajaj Housing Finance before the IPO opening. The total funds from investors and the public would be utilized to improve the capital base of the company and to support its future business needs, majorly for future lending.
The Bajaj Housing Finance IPO was subscribed 67.43 times, by September 11, 2024. It saw subscriptions of 7.41 times by the retail investors, 222.05 times by Qualified institutions, and 43.98 times in the Non-Institutional Buyers category.
Bajaj Housing is the second-highest profit-making HFC having a good credit rating. The AAA/Stable ratings for long-term borrowing from both Crisil & IND and A1+ ratings for short-term borrowing make it capable of borrowing money at competitive rates from different sources.
Commenting on the upcoming Bajaj Housing Finance IPO name Prashanth Tapse, Senior VP (Research), Mehta Equities said that considering company’s strong parentage brand “BAJAJ” along with its solid position in the housing finance space with Rs 97071 cr AUM which is well-positioned itself to capitalize the industry demand and assuming to deliver impressive growth in future, like historical CAGR growth of 30.9% in AUM from Fiscal 2022 to 2024, we expect the IPO to make a robust debut and price of the company may double allotted investors’ wealth or even do more than on the listing day.
Tapse also added that post listing, we recommend conservative investors to choose profit booking, if 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.
The Bajaj Housing Finance has total borrowings of Rs 62,129 crores, with a revenue of Rs 7,617.71. The profit after tax (PAT) was Rs 1,731.22 crores and reserves and surplus for FY24 were Rs 5,520.81 crores. The company had assets of Rs 81,827.09 crores in FY24.
The Brokerage houses such as Chola Securities, IDBI Capital, Incred Equities, Nirmal Bang Securities, Canara Bank Securities, Reliance Securities, Devan Choksey Research, Marwadi Shares, BP Equities, Stoxbox, Mehta Equities, LKP Research, Ventura Securities, SMIFS, Gupta Equities, and Kunvarji Wealth Solution have recommended to subscribe the Bajaj Housing Finance IPO. However, SMC Global has rated it as a fair IPO.
Bajaj Housing Finance saw a 34 per cent increase in revenue and a 38 per cent rise in profit after tax (PAT) between March 31, 2023, and March 31, 2024, indicating strong financial growth.
Commenting on the Bajaj Housing Finance Krishna Appala, Sr. Research Analyst, Capitalmind Research said that Bajaj Housing recently sought Rs 6,500 crore through its IPO, but the market‘s response was overwhelming, with bids exceeding Rs 4 lakh crore. This massive interest is driven by factors such as strong parentage, reasonable valuations, and the current IPO euphoria. The big question now is: will the Bajaj Housing IPO trigger a sector-wide re-rating for NBFCs? At least for the moment, the signs point to yes.
Appala also added that on the growth front, retail loan growth, particularly in personal, auto, and mortgage loans, continues to be strong, while MSME and business banking portfolios are also expanding robustly. Though challenges like rising funding costs and heightened competition in corporate lending persist, the overall credit quality of the sector remains solid. NBFCs are optimistic, focusing on a balanced approach while seizing opportunities in MSME, housing, and consumer loans.
The lot size for Bajaj Housing Finance was 214 shares. The minimum and maximum lot sizes were 1 and 13 respectively for retailers. The small High Net Worth Individuals (HNI) could for a minimum of 14 lots and a maximum of 66 lots. However, Big HNI’s had to book and apply for at least 67 lots.
The Rs 6,560 crores was the aggregate amount for the total IPO issued. The fresh issuance was Rs 3,560 crores and the offer for sale (OFS) was Rs 3000 crores by promoters. The issue had Rs 500 crores of shareholder quota for Bajaj Finance and Bajaj Finserv.
Bajaj Finance and Bajaj Finserv are the company promoters for Bajaj Housing Finance. The shareholding of the promoters before the IPO issuance was 100 per cent. However, after the IPO issuance, it has come down to 87.8 per cent.
Bajaj Housing Finance has a high credit bureau score for salaried customers. In FY 24 home loans had 58 per cent of the contribution of the Assets Under Management. The breakdown was as 88 per cent were salaried customers, 4 per cent were self-employed professionals, and 8 per cent were self-employed non-professional customers. The average ticket size of home loans was Rs 4.6 million, with an average loan-to-value ratio of 69. per cent as of Q1FY25.
Bajaj Housing Finance, a non-deposit-taking Housing Finance Company (HFC), has been registered with the National Housing Bank since September 2015. The company offers a wide range of tailored financial solutions for purchasing and renovating residential and commercial properties.
In FY24, Bajaj Housing Finance reported a net profit of Rs 1,731 crore, an increase of 38% on year compared to Rs 1,258 crore it reported in FY23. Additionally, the net income during the same period grew 34% year-on-year, reaching Rs 7,618 crore.
Before Bajaj Housing Finance‘s IPO opened, the company raised Rs 1,758 crore from anchor investors, which include JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund. The collected money will be utilised to bolster the company’s capital base, supporting its future business needs, particularly for onward lending.
Bajaj Housing Finance’s shares are currently trading at a premium in the grey market. They are fetching a premium of over 100% to the issue price. This significant grey market interest underscores the strong demand for the IPO.
The previous record was held by Tata Technologies, which saw bids worth over Rs 1.5 lakh crore for its Rs 3,000 crore IPO. Tata Technologies, the first Tata Group company to launch an IPO in nearly two decades, has set the price band for its maiden public issue at Rs 475-500 per share. The company’s shares made a robust debut on the stock exchanges today.
The highly anticipated Bajaj Housing Finance IPO has shattered historical records, drawing bids worth over Rs 3.2 lakh crore. The company aimed to raise approximately Rs 6,560 crore through a mix of fresh equity sale and an Offer for Sale (OFS). At the close of the issue, the IPO was subscribed 63.6 times, reflecting robust demand, particularly from non-institutional investors, whose category was subscribed over 200 times.
Read more: Bajaj Housing Finance IPO breaks Tata Tech’s IPO record with bids worth over Rs 3.2 lakh crore
The IPO was subscribed to a total of 67.43 times more than the offered shares. The company received bids worth Rs 3.23 lakh crore. Out of which, bids from retail investors were received for Rs 15,195.36 crore. The retail segment was booked to a total of 7.4 times.
As per the tentative schedule, the listing of the company will take place on September 16 on the NSE and BSE mainboard segments.