Bajaj Housing Finance Limited

Bajaj Housing Finance Limited

listed
₹14,124Min. investment
  1. Bid start
    9 Sep
  2. Bid end
    11 Sep
  3. Allotment
    11 Sep
  4. Release of funds
    13 Sep
  5. Demat transfer
    12 Sep
  6. Listing
    16 Sep

About Bajaj Housing Finance Limited

Price range₹66.00 – ₹70.00
IPO type
Regular
Lot size214 shares
Issue size₹6,560Cr
Red Herring Prospectus
Read

Market Cap

₹0.03CrLower than sector avg

Revenue

₹2,646.06CrLower than sector avg

Growth rate

3Y CAGR
0.34%

Checklist

Quality analysis

Revenue growth
Company valuation
Earnings expansion

Risk analysis

Debt to Equity ratio
Promoter holdings
Shares pledged
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily

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Revenue

Higher revenue means strong sales and good market demand
This IPO
₹2,646.06Cr
This sector
₹6,648.53Cr
Compare with companies

PAT

Higher PAT means strong profitability and efficient cost management
This IPO
₹421.33Cr
This sector
₹1,256.25Cr
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Market cap

Higher market cap means strong confidence but may suggest overvaluation
This IPO
₹0.03Cr
This sector
₹34,697.72Cr
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P/E ratio

Lower ratio usually means stock is undervalued
This IPO
60.02
This sector
15.16
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D/E ratio

Lower ratio usually means fewer liabilities
This IPO
0.06
This sector
2.85
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About Bajaj Housing Finance Limited

About Bajaj Housing Finance Limited  Incorporated in 2008, Bajaj Housing Finance Limited is a non-deposit taking housing finance company (HFC) in India. Its product portfolio includes home loans, loans against property (LAP), lease rental discounting, and developer financing. It caters to every customer segment, from individual homebuyers to large-scale developers.  As of 30 June 2024, the company has 3.23 lakh active customers and an overall loan disbursement of ₹12,003 crore. It is present across 174 locations in 20 states and three union territories with a network of 215 branches. The company has consistently scaled its operations to become the second-largest non-deposit taking HFC (in terms of AUM) in India within seven years of commencing mortgage operations.  Total assets under management (AUM) stood at ₹97,071 crore during the first quarter of FY25. Home loans make up over 57% of the total AUM, while LAP and other products make up for the remaining AUM. Meanwhile, the average ticket size of the home loan was around ₹0.46 crore and ₹0.59 crore for LAP.  The company originates loans from direct and indirect channels. It sources direct loans through strategic partnerships with developers, self-sourcing through customer engagement, and partnerships with digital players. It also source loans indirectly through a distribution network of channel partners, aggregators, direct selling agents, third-party agents and connectors.  Bajaj Housing Finance also offers a suite of insurance products, including life, general, and health insurance. Between FY22 and FY24, it saw a CAGR rise of 19.6% in its AUM (assets under management) and 34% in its profit. As of 30 June 2024, the gross non-performing assets (GNPA) ratio and net non-performing assets (NNPA) ratio had been at 0.28% and 0.11%, respectively. Meanwhile, around 75.5% of home loan AUM were from customers with a CIBIL score above 750 as of 30 June 2024.  Moreover, NBFC credit is expected to grow at a CAGR of 15% to 17% between FY24 and FY27, driven by growth in the retail segment. Housing finance accounts for the highest share in NBFC retail credit, which could benefit the company.  And now, Bajaj Housing Finance Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹6,560 crore, comprising fresh issue aggregating to ₹3,560 crore, as well as an offer for sale, aggregating to ₹3000 crore. The money raised from the fresh issue will be utilised to augment its capital base to meet future business requirements. Its shares will be listed on the NSE and BSE.  Here are key details about the Bajaj Housing Finance IPO:     Company Name  Bajaj Housing Finance Limited   Company Type  Private    Company Established On  2008   Bajaj Housing Finance Limited IPO Opening Date  9th September 2024    Bajaj Housing Finance Limited IPO Closing Date  September 11, 2024   Bajaj Housing Finance Limited IPO Allotment Status  September 12, 2024    Credit of Shares to the Demat Account  September 13, 2024   Bajaj Housing Finance Limited IPO Listing Date  September 16, 2024    Bajaj Housing Finance Limited IPO Face Value  ₹10 per share   Bajaj Housing Finance Limited IPO Lot Size  214 Shares    Bajaj Housing Finance Limited IPO Issue Size  ₹6,560.00 Cr   Bajaj Housing Finance Limited IPO to be Listed on  BSE, NSE    Bajaj Housing Finance Limited IPO Price band  ₹66 to ₹70 per share        Financial snapshot     Particulars  FY22  FY23  FY24  Q1 FY25    Revenue  ₹ 3,766 crore  ₹ 5,664 crore  ₹ 7,617 crore   ₹ 2,208 crore     Net Profit  ₹ 709 crore  ₹ 1,257 crore  ₹ 1,731 crore  ₹ 482 crore              Here’s a quick look at Bajaj Housing Finance Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   The company has recognition as a reliable retail brand as it is a wholly owned subsidiary of Bajaj Finance, which is among India’s largest NBFCs based on AUM as of FY24.  Second largest HFC in India in terms of AUM as of 31 March 2024.  Strategic presence with omnichannel sourcing strategy, including six centralised hubs for retail underwriting, seven centralised processing hubs for loan processing and 1,780 active channel partners as of Q1 FY25.  Lowest gross non-performing assets (GNPA) and net non-performing assets (NNPA) compared to peers in FY24 due to well-defined credit evaluation and risk management practices.  Access to diversified and cost-effective borrowing sources, having established relationships with 23 banks as of 30 June 2024.   Risks and threats   The volatility in interest rates may affect its net interest income, net interest margin, and the value of its fixed-income portfolio.  It may face mismatches in the maturity of its assets and liabilities, leading to liquidity concerns.  Subject to periodic inspections by the National Housing Bank and non-compliance may adversely affect its business and finances.  The business is dependent on and affected by the real estate sector.  88% of its total disbursements are concentrated in four states and 1 UT as of 30 June 2024.  The company is dependent on an external distribution network that does not work exclusively for the company, accounting for 43% of its home loans AUM as of Q1 FY25.            Bajaj Housing Finance Limited IPO details  |Bajaj Housing Finance Limited IPO date  According to the offer document filed by the company with the SEBI, the Bajaj Housing Finance IPO’s opening date – in other words, the Bajaj Housing Finance IPO launch date – will be 9th September 2024. The Bajaj Housing Finance IPO closing date is 11th September 2024. After this, investors will be updated about the allotment status on 12th September 2024.   Investors who have been allotted shares can expect them to be credited to their demat account on 13th September 2024. The Bajaj Housing Finance IPO listing date is 16th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  |Bajaj Housing Finance Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Bajaj Housing Finance IPO price band has been set between ₹66 and ₹70 per share. Interested investors can choose a price within this band to apply for the IPO.  The Bajaj Housing Finance IPO listing price will be determined on 16th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Bajaj Housing Finance Limited IPO Lot size  The Bajaj Housing Finance IPO details have not been declared. The Bajaj Housing Finance IPO lot size is yet to be announced and an investor can apply for a minimum of 1 lot. Meanwhile, the Bajaj Housing Finance IPO issue size is approx ₹7000 crore.           How to pre-apply for the Bajaj Housing Finance Limited IPO?  You can pre-apply for the Bajaj Housing Finance Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Bajaj Housing Finance Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Bajaj Housing Finance Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Bajaj Housing Finance Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Bajaj Housing Finance Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Bajaj Housing Finance Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Bajaj Housing Finance Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Bajaj Housing Finance Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Bajaj Housing Finance Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Bajaj Housing Finance Limited IPO  To apply for the Bajaj Housing Finance Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Bajaj Housing Finance Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Bajaj Housing Finance Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.     

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Bajaj Housing Finance Limited ?

The issue size of the Bajaj Housing Finance Limited is 6560 Cr.

What is 'pre-apply' for Bajaj Housing Finance Limited ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Bajaj Housing Finance Limited shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.