Bajaj Housing Finance IPO Launching Date, GMP, DRHP. Check Details Now

Bajaj Housing Finance IPO date for opening is from September 9, in order to raise ₹3,560 crore via fresh issue in initial public offering as they mentioned in their DRHP.

Business of Bajaj Housing Finance

Bajaj Housing Finance founded in 2008 & registered with the National Housing Bank (NHB) since 2015. it is a non deposit taking NBFC that provides financial solutions for purchasing or renovating the individual or commercial properties.

The company is a part of Bajaj Group with Bajaj Finance and Bajaj Finserv are the promoters of Bajaj Housing Finance, meaning they play an important role providing the initial capital, business idea, or other resources needed to set up the company and have substantial stake in the company.

Bajaj Housing Finance AUM

The current Asset under management of the company as of 30 June 2024 is of 97,071 crore compared HDFC Limited AUM as last declared by them in the last annual report before their merger was over 5 Lakh Crore.

Breakdown of AUM

Home Loan	57.49%
Lease Rental	19.54%
Developer Financing	11.17%
LAP	9.97%

The most interesting thing about the business of Bajaj Housing Finance for which many big investing firms and investors are focusing on, is their Non Performing Assets (NPA).

Compared to its peers Bajaj Housing Finance Limited has lowest NPA that basically, tell us that how much efficient is their business also, the risk percentage they take while lending the loans.

FY22	Gross NPA	Net NPA
Bajaj Housing Finance	0.28%	0.11%
LIC Housing Finance	3.29%	1.68%
PNB Housing Finance	1.35%	0.92%
Can Fin Homes	0.91%	0.49%

Due to this, the company has AAA credit rating showing the strength and their risk management capabilities.

Bajaj Housing Finance IPO Details

Bajaj Housing Finance are looking to raise total of ₹6,560 crore in which they will raise ₹3,560 crore via fresh issue and will raise other 3,000 via offer for sale (OFS). The IPO will going to open on 9th of September 2024 and will close on 11th of September 2024.

It has been announced that the allocation for the Bajaj Housing Finance IPO will be finalized on Thursday, September 12, 2024. Bajaj Housing Finance IPO is scheduled to go public on BSE and NSE on September 16, 2024, with a tentative listing date of September 16.

The price band decided for Bajaj Housing Finance IPO is at ₹66 to ₹70 per share with a minimum lot size for an application is 214 Shares.

The offer is divided among qualified institutional buyers (QIBs) at around 50%, non-institutional investors at 15%, and retail investors distributing the remaining 35%.

Each share that will going to be issue will have a face value of ₹10 each.

Also Read, Big Opportunity: 6 IPO Opening In September 2024 First Week You Should Focus On

The promoters of the company will going to sell their stake to raise the money from the market. Currently, before the offer, Bajaj Finance Limited has the 100% stake in Bajaj Housing Finance Limited with having total equity shares 7,819,575,273.

The net proceeds from the IPO of Bajaj Housing Finance will be utilised for meeting the future business requirements especially creating a big capital base so that they can lend and earn more.

Book running lead managers to the Offer are Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited and IIFL Securities Limited.

As we can check from the financial information of Bajaj Housing Finance their profits have increase massively from 709.6 crore to 1731.2 crore in period FY2021-22 to FY 2023-24.

Also, it’s 85% of Asset under management (AUM) are concentrated in four states Maharastra, Karnataka, Telangana, Gujarat and union territory of New Delhi

As expected from the current grey market premium (GMP) that shot up sharply to ₹65 per share, Bajaj Housing Finance Limited IPO price band is at ₹66 to ₹70 per share, that means you have to invest minimum of ₹14,980 to apply in this IPO.

What do you think about this IPO, do let us know in the comments section.

Disclaimer: The Honest American provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.