September 9, 2024
New Delhi, India
Bajaj Housing Finance IPO
The initial public offering (IPO) of Bajaj Housing Finance, a Bajaj Group company, is open for subscription from today, Monday, September 9, to Wednesday, September 11. The shares are priced in the range of ₹66-70 apiece, with a minimum bid lot size of 214 equity shares.
IPO Details:
- Offer Size: Bajaj Housing Finance aims to raise ₹6,560 crore through the IPO, which includes a fresh issue of ₹3,560 crore and an offer for sale (OFS) of ₹3,000 crore by its promoter, Bajaj Finance.
- Utilization of Funds: The net proceeds from the IPO will be used to enhance the company’s capital base to meet future business needs, including onward lending.
- Anchor Investors: Ahead of the IPO, Bajaj Housing Finance raised ₹1,758 crore from 104 anchor investors by allocating 25,11,42,856 equity shares at ₹70 per share. The anchor book features major names such as the Government of Singapore, New World Fund Inc, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, JP Morgan, and several domestic mutual funds and insurance players.
Company Overview:
Founded in 2008, Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB) since 2015. The company offers a range of mortgage loans, including home loans, loans against property, rent concessions, and developer finance. As of March 31, 2024, Bajaj Housing Finance had 308,693 active customers, with 81.7% of them being home loan customers.
Network and Operations:
The company operates a network of 215 branches across 174 locations in 20 states and three union territories, supported by six centralized retail loan review centers and seven centralized loan processing centers.
Share Reservation:
- Employees: Shares worth ₹200 crore are reserved for eligible employees.
- Existing Shareholders: Shares worth ₹500 crore are reserved for eligible shareholders of Bajaj Finance and Bajaj Finserv.
- Allocation: Of the net offer, 50% of shares will be allocated to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors.
Financial Performance:
- For the quarter ending June 30, 2024, Bajaj Housing Finance reported a net profit of ₹482.61 crore on a revenue of ₹2,208.73 crore.
- For the financial year ending March 31, 2024, the company posted a net profit of ₹1,731.22 crore with a revenue of ₹7,617.71 crore.
IPO Listing and Managers:
The shares of Bajaj Housing Finance are expected to be listed on both the BSE and NSE on Monday, September 16. The book-running lead managers for the IPO are Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities, while Kfin Technologies is the registrar for the issue.
Disclaimer:
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