The Bajaj Housing Finance IPO, amounting to Rs 6,560.00 crores, is being issued as a book built issue. The issue comprises a fresh issue of 50.86 crore shares, aggregating to Rs 3,560.00 crores, and an offer for sale of 42.86 crore shares, aggregating to Rs 3,000.00 crores.
The Bajaj Housing Finance IPO is scheduled to be opened for subscription on September 9, 2024, and to close on September 11, 2024. The allotment for the Bajaj Housing Finance IPO is expected to be finalized by Thursday, September 12, 2024. The IPO is expected to be listed on BSE and NSE, with a tentative listing date set for Monday, September 16, 2024.
The price band for the Bajaj Housing Finance IPO has been set at ₹66 to ₹70 per share. A minimum lot size of 214 shares has been required for an application. The minimum investment amount required by retail investors has been set at ₹14,980. For sNII, the minimum lot size investment is set at 14 lots (2,996 shares), amounting to ₹209,720, and for bNII, it is set at 67 lots (14,338 shares),
Refer to Bajaj Housing Finance IPO RHP for brief information.
amounting to ₹1,003,660.
| IPO Date | September 9, 2024 to September 11, 2024 |
| Listing Date | September 16, 2024 |
| Face Value | ₹ 10 / Share |
| Price Band | ₹ 66 to ₹ 70 / Share |
| Lot Size | 214 Shares |
| Total Issue Size | 937,142,858 share (Aggregating up to ₹6,560.00 Cr) |
| Fresh Issue | 508,571,429 (Aggregating up to ₹3,560.00 Cr) |
| Offer for Sale | 428,571,429 shares (Aggregating up to ₹3,000.00 Cr) |
| Employee Discount | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 7,819,575,273 |
| Share holding post issue | 8,328,146,702 |
| Market Maker portion |
Bajaj Housing Finance Limited IPO opens on September 9, 2024, and closes on September 11, 2024.
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Basis of Allotment | September 12, 2024 |
| Initiation of Refunds | September 13, 2024 |
| Credit of Shares to Demat | September 13, 2024 |
| Listing Date | September 16, 2024 |
| Cut-off time for UPI mandate confirmation | September 11, 2024 |
A minimum of 214 shares and multiples thereof can be bid for by investors. The table below depicts the minimum and maximum investments by retail investors and HNIs, in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 214 | Rs.14,980 |
| Retail (Max) | 13 | 2,782 | Rs.194,740 |
| S-HNI (Min) | 14 | 2,996 | Rs.209,720 |
| S-HNI (Max) | 66 | 14,124 | Rs.988,680 |
| B-HNI (Min) | 67 | 14,338 | Rs.1,003,660 |
| HNI (Min) |
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 87.8% |
A total of 93,71,42,865 shares are being offered in the Bajaj Housing Finance IPO. Of these, 16,74,28,580 shares (17.87%) are allocated to QIBs, 12,55,71,430 shares (13.4%) to NIIs, 29,30,00,000 shares (31.27%) to RIIs, 2,85,71,428 shares (3.05%) to employees, and 25,11,42,856 shares (26.8%) to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 25,11,42,856 26.8% |
NA |
| Market Maker Shares Offered | |
|
| Other Shares Offered | |
|
| QIB Shares Offered | 16,74,28,580 (17.87%) |
NA |
| NII (HNI) Shares Offered | 12,55,71,430 (13.4%) |
|
| bNII > ₹10L | 8,37,14,286 (8.93%) |
27,942 |
| sNII < ₹10L | 4,18,57,143 (4.47%) |
13,971 |
| Retail Shares Offered | 29,30,00,000 31.27% |
13,69,158 |
| Employee Shares Offered | 2,85,71,428 3.05% |
NA |
| Total Shares Offered | 93,71,42,865 100% |
Rs 1,758.00 crore has been raised from anchor investors by the Bajaj Housing Finance IPO. The anchor bid date for the Bajaj Housing Finance IPO has been set as September 6, 2024.
| Bid Date | |
| Shares Offered | 25,11,42,856 |
| Anchor Portion Size (In Cr.) | 1,758.00 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 12, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 11, 2024 |
India's Bajaj Housing Finance Limited is a quickly expanding provider of housing finance. They were founded in 2015 and provide a range of mortgage products, such as developer finance, loans against property, and house loans. They have a proven track record of profitability and concentrate on salaried borrowers who pose less risk. Among the big house finance organizations, Bajaj house Finance has the lowest default rates and the best credit ratings for borrowing in India. They belong to the diverse conglomerate known as the Bajaj Group, which was established in 1926.
It's interesting to note that Bajaj Housing Finance Ltd.'s overall market value has crossed the Rs 1.57 lakh crore threshold, surpassing the combined market capitalization of the next nine rivals. In addition to solidifying its position as the industry leader, the most recent entrant in the home finance field has seen a robust rally that has increased its overall ranking above that of its colleagues in the top 10.
As of September, the closing market capitalization of the other nine housing financing companies was Rs 1.56 lakh crore. Names like Aptus Value Housing, Aavas Financiers, LIC Housing Finance, PNB Housing Finance, Aadhar Housing Finance, Can Fin Homes, Home First Finance Company, and India Shelter Finance Corporation were among those on the list.
The market players argue that Bajaj Housing Finance's current valuations are not warranted because they reflect stock exuberance, especially in the wake of the historic IPO. Following an incredible surge, the stock experienced some profit taking on Wednesday, dropping 9.15% from the day's high of Rs 188.45 to Rs 171.16 during the trading session.
Due to the company's solid track record, solid fundamentals, and good parentage, some market gurus have a bullish outlook on the stock. They contend that the IPO is causing both ordinary and institutional investors to snap up the shares due to "fear of missing out," or FOMO.
The market capitalization of Bajaj Housing Finance IPO is Rs 58297.03 Cr.
KPI as of June 30, 2024.
| KPI | Values |
|---|---|
| ROE | |
| ROCE | |
| Debt/Equity | 5.7 |
| RoNW | 3.6% |
| P/BV | 3.72 |
| PAT Margin (%) |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 2.21 | 2.32 |
| P/E (x) | 31.62 | 30.2 |
The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of June 30, 2024 that is available in RHP.
The company intends to utilize the net proceeds towards the following objective:
Augment capital base to meet future business requirements of the company towards onward lending.
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