Bajaj Housing Finance Limited is set to launch its Initial Public Offering (IPO) in September 2024. The company is a subsidiary of Bajaj Finserv and aims to raise ₹7,000 crore through the IPO.

IPO Details

• Issue Type: Main Board IPO
• Issue Size: ₹7,000 crore
• Fresh Issue: Approx ₹3,560 Crores
• Offer for Sale: Approx ₹3,000 Crores
• Face Value: ₹10 Per Equity Share
• Price Band: ₹65 to ₹70 Per Share (Tentative)
• Issue Open Date: September 11, 2024
• Issue Close Date: September 11, 2024
• Expected Listing Date: September 16, 2024
• Lead Managers: To be announced
• Registrar: Kfin Technologies Limited

Timeline

IPO Open Date:	September 9, 2024
IPO Close Date:	September 11 , 2024
Basis of Allotment:	September 12, 2024
Refunds:	September 13, 2024
Credit to Demat Account:	September 13, 2024
IPO Listing Date:	September 16, 2024

About Company

Bajaj Housing Finance Limited is a leading housing finance company in India. It is a subsidiary of Bajaj Finserv, a diversified financial services company.

Core Business:

• Housing Finance: Bajaj Housing Finance provides various housing finance products, including home loans, home improvement loans, and loan against property.
• Distribution Network: The company has a vast distribution network across India, reaching out to customers through various channels.

Market Position:

• Bajaj Housing Finance is one of the top players in the Indian housing finance market.
• The company has a strong brand name and a large customer base.
• Bajaj Housing Finance has a focus on customer service and offers competitive interest rates.

Future Outlook:

• The Indian housing finance market is expected to grow, driven by increasing urbanization and rising incomes.
• Bajaj Housing Finance is well-positioned to capitalize on this growth with its strong brand and distribution network.
• The company may explore new product offerings or expand its geographic reach in the future.

Here are some resources to learn more about company

• Read DRHP Here

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Objective

The primary objectives of the Bajaj Housing Finance Limited IPO are:

• Raising Capital: The company aims to raise ₹6,560 crores through the IPO, which will be used for:
• Brand Visibility: The IPO will increase the visibility of Bajaj Housing Finance among investors and the general public, enhancing its brand recognition and credibility.
• Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.

By achieving these objectives, Bajaj Housing Finance Limited aims to strengthen its financial position, expand its business, and enhance its market presence.

POSITIVE

• Strong Brand: The Bajaj brand is well-established and trusted by consumers, providing a competitive advantage.
• Market Leadership: Bajaj Housing Finance is a leading player in the Indian housing finance market with a strong customer base and distribution network.
• Growth Potential: The Indian housing finance market is expected to grow, driven by increasing urbanization and rising incomes.
• Diversified Product Offerings: The company offers a range of housing finance products to cater to various customer needs.

NEGATIVE

• Interest Rate Sensitivity: Housing finance companies are sensitive to interest rate fluctuations, which can impact profitability.
• Competition: The housing finance market is competitive, with both public and private sector players.
• Asset Quality Concerns: Maintaining a high quality of assets is crucial for the long-term sustainability of housing finance companies.
• Economic Downturns: Economic downturns can impact the housing market and affect demand for housing finance products.

So, How Does Bajaj Housing Finance Limited IPO Fare in Terms of Financials ?

Financial Details

Period Ended	Assets	Revenue	PAT	Net Worth	Total Borrowing
31 Mar 2024	81,827.09	7,617.71	1,731.22	12,233.51	69,129.32
31 Mar 2023	64,654.14	5,665.44	1,257.87	10,503.19	53,745.39
31 Mar 2022	48,527.08	3,767.13	962.00	6,741.36	41,492.32

Financial Review of Bajaj Housing Finance Limited IPO

Financial Analysis:

Bajaj Housing Finance Limited’s financial performance has been mixed over the past three years. Here are some key observations:

• Assets: Assets have grown steadily over the past three years, with a CAGR of around 20%. This indicates that the company is expanding its loan portfolio.
• Revenue: Revenue has also grown, but at a slower pace than assets. This could be due to the company’s focus on originating larger loans or a decline in net interest margins.
• Profit After Tax: Profit after tax has grown at a similar pace to revenue, indicating that the company’s profitability has remained stable.
• Net Worth: Net worth has grown steadily over the past three years, reflecting the company’s ability to retain earnings.
• Total Borrowing: Total borrowing has also grown steadily, as the company has funded its asset growth through debt.

Overall, Bajaj Housing Finance Limited appears to be a financially sound company with a good track record of growth. However, it is important to note that this is a limited financial review and investors should carefully consider all relevant factors before making an investment decision.

Bajaj Housing Finance Limited IPO Valuation :

Earning Per Share (EPS):	₹2.6 per Equity Share
Price/Earning P/E Ratio:	N/A
Return on Net Worth (RoNW):	15.2%
Net Asset Value (NAV):	₹18.2 per Equity Share

Bajaj Housing Finance Limited IPO – SWOT Analysis

Strengths

• Strong Brand: The Bajaj brand is well-established and trusted by consumers, providing a competitive advantage.
• Market Leadership: Bajaj Housing Finance is a leading player in the Indian housing finance market with a strong customer base and distribution network.
• Diverse Product Offerings: The company offers a range of housing finance products to cater to various customer needs.
• Experienced Management: The company has a seasoned management team with expertise in the housing finance sector.

Weaknesses

• Interest Rate Sensitivity: Housing finance companies are sensitive to interest rate fluctuations, which can impact profitability.
• Competition: The housing finance market is competitive, with both public and private sector players.
• Asset Quality Concerns: Maintaining a high quality of assets is crucial for the long-term sustainability of housing finance companies.
• Economic Downturns: Economic downturns can impact the housing market and affect demand for housing finance products.

Opportunities

• Growing Housing Market: The Indian housing market is expected to continue growing, driven by urbanization and rising incomes.
• Technology Adoption: Leveraging technology to improve customer experience and operational efficiency.
• Expanding Product Offerings: Introducing new products or services to cater to evolving customer needs.
• Geographic Expansion: Expanding operations into new regions or markets.

Threats

• Economic Slowdowns: Economic downturns can impact the housing market and reduce demand for housing finance products.
• Regulatory Changes: Changes in government policies or regulations can affect the housing finance industry.
• Competition from Non-Banking Financial Companies (NBFCs): NBFCs are becoming increasingly competitive in the housing finance market.

COMPETITIVE ANALYSIS: MARKET PEERS

• HDFC Limited: A leading housing finance company with a strong market presence.
• LIC Housing Finance Limited: A government-backed housing finance company.
• State Bank of India (SBI): One of the largest public sector banks, also offering housing finance products.
• Punjab National Bank (PNB): Another public sector bank with a significant presence in housing finance.
• Private Sector Banks: Several private sector banks, such as HDFC Bank and Axis Bank, also offer housing finance products.

Bajaj Housing Finance Limited IPO GMP

• Grey market premium as on 11-09-2024 = ₹65 / Share

Disclaimer:

• IPO Grey Market Premium (Bajaj Housing Finance Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Bajaj Housing Finance Limited IPO

🔴 Live Subscription Status 🔴

11/09/2024 05:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	167,428,580	1.14	7.46	209.36
Non Institutional Investors(NIIs)	125,571,430	4.71	16.45	41.45
Retail Individual Investors(RIIs)	293,000,000	1.79	3.83	6.97
Employees	28,571,428	0.38	0.96	2.00
Total	686,000,009	2.26	7.50	63.56

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