Bajaj Housing Finance was listed at Rs 150 on the National Stock Exchange, a premium of 114% to the issue price. The IPO was opened to investors on September 09 and closed on September 11.
Bajaj Housing Finance GMP
The housing finance company’s stocks were fetching a premium of 107% in the grey market. It is an unofficial place where shares trade illegally ahead of listing. Market participants track GMP to keep an eye on listing gains.
Bajaj Housing Finance IPO Details
The company raised a sum of Rs 6,560 crore through fresh capital as well as the sale of secondary shares. The company received bids worth Rs 3.23 lakh crore, the highest ever in India’s primary market any IPO got. The company kept the IPO price band in a range of Rs 66 to Rs 70 per equity share. The allotment of shares was finalised on September 12. A retail participant had to apply for a minimum of 214 shares or one lot that amounted to Rs 14,980.
About Bajaj Housing Finance
The company is the 2nd highest profit-making housing finance company with the highest credit rating. It has a robust ROA/ROE of 2.4%/15.2% in FY24 with a net profit of 76% over FY20-24. Also, the company achieved a growth rate of 31% in housing loans, 53% in lease rental discounting, and 26% in developer finance loan book over FY22-24. The company has the lowest GNPA (0.27%) & NNPA (0.10%) as of FY24.
Motilal Oswal on Bajaj Housing Finance
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.
Prabhudas Lilladher on Bajaj Housing Finance
Commenting on the same Nipun Lodha, Director – Corporate Finance, PL Investment Banking PL Capital said that 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,” Lodha also added.
BRLMs and Registrar
Kotak Mahindra Capital Company Ltd, BoFA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Pvt Ltd, SBI Capital Markets Ltd, JM Financial Ltd and IIFL Securities Ltd were the book-running lead managers of the IPO, while Kfin Technologies Ltd handles the work of the registrar for the issue.