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Bajaj Housing Finance gets board nod for IPO with fresh issue and OFS
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2 min read | Updated on June 07, 2024, 14:33 IST
SUMMARY
In September 2022, the RBI listed upper-layer NBFCs with assets of ₹50,000 crore or more, Bajaj Housing Finance, part of this group, was required to be listed on stock exchanges by September 2025.
Bajaj Housing Finance gets board nod for IPO with fresh issue and OFS
Bajaj Housing Finance, the leading housing finance company in India, has received approval from its board of directors to go ahead with an initial public offering (IPO) of equity shares at ₹10 each.
The board has approved an initial public offering (IPO) plan, which involves raising ₹4,000 crore via fresh issue and an offer-for-sale (OFS).
Company structure and services
Bajaj Finance Housing is a wholly owned subsidiary of Bajaj Finance Limited, Bajaj Finserv holds 51.34 % in Bajaj Finance Limited.
The home loan company offers an entire spectrum of mortgage products which include home loans, loans against property as well as lease rental discounts that cater for both salaried and self-employed customers. It also provides construction finance and inventory finance to developers.
Financials of Bajaj Housing Finance
For FY24, the housing lender reported a net profit of ₹1,731 crore, up 38% YoY. Capital adequacy ratio was at 21.28% as on 31st March 2024 including Tier II capital while net NPA stood at 0.10%.
As on March 31, 2024 the proportion of home loans to total assets under management had come down to 57.8% from the previous year’s level of 61.7%.
The average ticket size for home loans amongst salaried customers is ₹46 lakh out of which around more than eight out of ten are salaried individuals. As on March 31,2024 operates across one hundred seventy four locations only. In loan against property segment it lends to mass affluent and self employed customers with an average ticket size being approximately ₹57 lakh per transaction by borrowers
Price performance of Bajaj Finance Limited stock
Financials of Bajaj Finance Limited
| Particulars | Figures (in ₹ crore) |
|---|---|
| Asset under management | 91,370.00 |
| Interest Income | 7,202 |
| Interest Expenses | 4, 692 |
| Net Interest Expense | 2,510 |
| Net total income | 2,925 |
| Pre-provisioning operating profit | 2,222 |
| Profit after tax | 1,731 |
In September 2022, the banking regulator published a list of 15 NBFCs classified as upper layer due to their loan books exceeding ₹50,000 crore.
According to RBI norms, the company is required to list its shares on the exchanges by September 2025.
To know more about IPOs listing, schedule and upcoming IPOs, click here
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