By Bajaj Housing Finance is gearing up for its much-anticipated initial public offering, which is scheduled to open for bidding on Monday, September 9. The company, a part of the renowned Bajaj Group, is offering its shares in a price range of ₹66-70 per share.
Investors looking to participate in this IPO will need to apply for a minimum of 214 equity shares, with additional applications in multiples of this number. The bidding process will remain open until Wednesday, September 11, giving interested parties a three-day window to make their investment decisions.
The IPO is significant, as Bajaj Housing Finance aims to raise a substantial ₹6,560 crore through this primary stake sale. This total includes a fresh share sale worth ₹3,560 crore and an offer-for-sale (OFS) by its promoter, Bajaj Finance Ltd, amounting to ₹3,000 crore.
The anchor book, which typically attracts institutional investors and sets the tone for the IPO, is set to open on Friday, September 6, just a few days before the main offering begins.
Founded in 2008, Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB). The company started offering mortgage loans in 2018, expanding its services to provide customized financial solutions to individuals and corporates.
These solutions cater to the purchase and renovation of homes and commercial spaces, and the company’s mortgage product range includes home loans, loans against property, rent concessions, and developer finance. Bajaj Housing Finance has established itself as a significant player in the housing finance sector, bolstered by the credibility and reach of the Bajaj Group, which has interests across various industries.
As of March 31, 2024, Bajaj Housing Finance had 308,693 active customers, with a significant 81.7% of these customers being home loan clients. The company operates through an extensive network of 215 branches located in 174 different locations across 20 states and three union territories in India.
This network is supported by six centralized retail loan review centers and seven centralized loan processing centers, ensuring streamlined operations and efficient service delivery to its growing customer base.
In addition to the general public offering, Bajaj Housing Finance has reserved shares worth ₹200 crore specifically for eligible employees of the company. Furthermore, shares valued at ₹500 crore have been reserved for eligible shareholders of Bajaj Finance and Bajaj Finserv.
Of the net offer, a significant portion—50%—will be allocated to qualified institutional bidders (QIBs), while non-institutional investors (NIIs) and retail investors will receive 15% and 35% of the net offer, respectively. This allocation strategy balances participation from various investor groups, ensuring a diverse shareholder base post-IPO.
Financially, Bajaj Housing Finance has performed strongly. For the three months ending June 30, 2024, the company reported a net profit of ₹482.61 crore, supported by a revenue of ₹2,208.73 crore. For the full financial year ending March 31, 2024, the company achieved a net profit of ₹1,731.22 crore, with a revenue of ₹7,617.71 crore. These numbers reflect the company’s robust business model and its ability to generate substantial returns in a competitive market.
The IPO is being managed by a consortium of leading financial institutions. Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the book running lead managers for this issue, indicating strong support from some of the most prominent names in the investment banking industry. Kfin Technologies has been appointed as the registrar for the issue, handling the administrative aspects of the IPO.
Shares of Bajaj Housing Finance are expected to be listed on both the Bombay Stock Exchange and the National Stock Exchange, with the listing likely to take place on Monday, September 16.
As the bidding date approaches, market participants are closely watching the developments, given the company’s strong market presence and the backing of the Bajaj Group. The IPO is anticipated to attract significant interest from a wide range of investors, from retail participants to large institutional buyers, all looking to secure a stake in this promising housing finance company.
