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Bajaj Housing Finance IPO Day 3 Highlights: Issue subscribed 63.53 times; check financials and other details
7 min read | Updated on September 11, 2024, 17:12 IST
SUMMARY
Bajaj Housing Finance IPO Day 3 LIVE: The initial share sale is a fresh issue of ₹3,560 crore and an offer-for-sale (OFS) of shares to the tune of ₹3,000 crore by the parent firm, Bajaj Finance.
Bajaj Housing Finance offers financial solutions for buying and renovating residential and commercial properties.
| Category | Number of times subscription |
|---|---|
| Qualified Institutional Buyers (QIBs) | 209.36 |
| Non-institutional investors | 41.42 |
| Retail Individual Investors (RIIs) | 6.91 |
| Total | 63.53 |
Proceeds from the fresh issue will be used to augment the company's capital base to meet future capital requirements.
Anyone who holds even a single share of Bajaj Finance or Bajaj Finserv as of the cut-off date can to apply for Bajaj Housing Finance initial public offering (IPO) under the shareholders' quota.
| Sr no | Category | No of times subscription |
|---|---|---|
| 1 | Qualified Institutional Buyers (QIBs) | 93.37 |
| 1(a) | Foreign Institutional Investors (FIIs) | - |
| 1(b) | Domestic Financial Institutions | - |
| 1(c) | Mutual funds | - |
| 1(d) | Others | - |
| 2 | Non Institutional Investors | 33.37 |
| 2.1 | Non Institutional Investors (Bid amount of more than ₹10 lakh) | 38.00 |
| 2.1(a) | Corporates | - |
| 2.1(b) | Individuals (Other than RIIs) | - |
| 2.1(c) | Others | - |
| 2.2 | NIIs (Bid amount of more than ₹2 lakh upto ₹10 lakh) | 24.10 |
| 2.2(a) | Corporates | - |
| 2.2(b) | Individuals (Other than RIIs) | - |
| 2.2(c) | Others | - |
| 3 | Retail Individual Investors (RIIs) | 6.06 |
| 3(a) | Cut Off | - |
| 3(b) | Price bids | - |
| 4 | Employees | 1.72 |
| 4(a) | Cut Off | - |
| 4(b) | Price Bids | - |
| 5 | Shareholders | 15.33 |
| 5(a) | Cut Off | - |
| 5(b) | Price Bids | - |
| - | Total | 33.15 |
| Category | Number of times subscription |
|---|---|
| Qualified Institutional Buyers (QIBs) | 80.40 |
| Non-institutional investors | 32.38 |
| Retail Individual Investors (RIIs) | 5.98 |
| Total | 29.75 |
- Subscription period: September 9 to September 11
- Allotment date: September 12
- Refund initiation: September 13
- Demat transfer: September 13
- Listing date: September 16
| Category | Number of times subscription |
|---|---|
| Qualified Institutional Buyers (QIBs) | 7.46 |
| Non-institutional investors | 16.93 |
| Retail Individual Investors (RIIs) | 4.56 |
| Total | 8 |
The ₹6,560 crore initial public offer of Bajaj Housing Finance will conclude on Wednesday, September 11 at 5 pm. The IPO opened on Monday, September 9.
The non-institutional investors (NIIs) portion was subscribed 16.45 times, while the retail investors quota garnered 3.83 times the subscription. The part set aside for qualified Institutional Buyers (QIBs) received 7.46 times the subscription.
The company had also raised ₹1,758 crore from anchor investors prior to the IPO.
The price range for the offer is fixed at ₹66 to ₹70 per share.
The initial share sale is a fresh issue of ₹3,560 crore and an offer-for-sale (OFS) of shares to the tune of ₹3,000 crore by the parent firm, Bajaj Finance.
The proceeds from the fresh issue will be utilised to augment the company's capital base and meet future capital requirements.
Bajaj Housing Finance IPO: Strengths
- The company is considered a reliable retail brand as it is a wholly owned subsidiary of Bajaj Finance.
- Second largest housing finance company (HFC) in India in terms of assets under management (AUM) as of March 31, 2024.
- Strategic presence with omnichannel sourcing strategy, seven centralised hubs for loan processing and 1,780 active channel partners as of the July quarter of FY25.
- Lowest net non-performing assets (NNPA) and gross non-performing assets (GNPA) compared to peers in the financial year 2023-24 due to clear-cut credit evaluation and risk management practices.
- Access to diversified and cost-effective borrowing sources.
Bajaj Housing Finance IPO: Risks
- The volatility in interest rates may affect the company's net interest margin, net interest income, and its fixed-income portfolio's value.
- Bajaj Housing Finance may face mismatches in the maturity of its assets and liabilities, which could lead to liquidity concerns.
- National Housing Bank periodically inspects the company, and non-compliance could adversely affect its business and finances.
- The business is dependent on the real estate sector.
- As of June 30, 2024, 88% of the company's total disbursements are concentrated in one union territory and four states.
- The company depends on an external distribution network that does not work exclusively for it, accounting for 43% of its home loans AUM as of Q1 FY25.
Bajaj Housing Finance IPO: Financials
| 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 |
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