The initial public offering (IPO) of Bajaj Housing Finance kicks off today, September 9, and will run until September 11. The Bajaj Group company is offering shares in the price range of ₹66-70 each, with a minimum lot size of 214 equity shares.
Key Details of the IPO
- Price Range: ₹66-70 per share
- Lot Size: 214 shares
- IPO Dates: September 9 to September 11
- Total Amount to be Raised: ₹6,560 crore
- Fresh Issue: ₹3,560 crore
- Offer for Sale (OFS): ₹3,000 crore
Bajaj Housing Finance, founded in 2008, operates as a non-deposit-taking housing finance company (HFC) and is registered with the National Housing Bank (NHB). It has been offering mortgage loans since the financial year 2018 and is part of the diversified Bajaj Group.
Financial Performance
For the quarter ending June 30, 2024, Bajaj Housing Finance reported a net profit of ₹482.61 crore on revenue of ₹2,208.73 crore. For the financial year ending March 31, 2024, the company achieved a net profit of ₹1,731.22 crore and revenue of ₹7,617.71 crore.
IPO Allotment and Anchors
Ahead of the IPO, Bajaj Housing Finance secured ₹1,758 crore from anchor investors, including major names like the Government of Singapore, ADIA, Fidelity, Invesco, and HSBC. The IPO will be listed on both BSE and NSE, with shares expected to begin trading on September 16.
Subscription Recommendations
InCred Equities: Recommends subscribing to the IPO, noting the company’s robust growth, strong asset quality, and superior technology-enabled platform. The firm’s valuation is seen as justified despite the relatively vulnerable margin profile.
Swastika Investmart: Also recommends subscribing, highlighting Bajaj Housing Finance’s consistent revenue and profit growth, favorable financial metrics, and significant anticipation and demand for the IPO.
IDBI Capital: Suggests subscribing for the long term. The company’s focus on high-end homebuyers and its extensive distribution network are seen as positive factors. The company has the highest salaried customer mix in its home loan portfolio and low GNPA and NNPA ratios.
Nirmal Bang Securities: Advises subscription, citing Bajaj Housing Finance’s strong performance, including a 31% loan CAGR and superior asset quality. The company’s valuation is deemed reasonable, with potential for premium due to higher AUM growth.
Canara Bank Securities: Recommends subscribing for long-term gains, pointing to the company’s strong market position, consistent performance, and technological advancements in risk management.
StoxBox: Suggests subscribing, noting that the issue is fairly valued at a P/BV of 3.8 times. The company’s robust credit underwriting process and risk management framework are seen as strengths.
Chola Securities: Recommends subscribing, emphasizing the company’s size, consistent AUM growth, and strong asset quality. The IPO is expected to command a premium over peers due to its scale and performance.
DR Choksey Finserv: Also recommends subscribing, with the IPO’s price-to-book value multiple at 3.2 times being reasonable compared to industry averages. The company’s strong brand equity, strategic expansion, and technological infrastructure are highlighted as positive factors.
With strong endorsements from various analysts and financial institutions, Bajaj Housing Finance’s IPO presents a compelling investment opportunity. The company’s solid financial performance, robust growth prospects, and favorable market position suggest it may be a worthwhile addition to your investment portfolio as per Business Today.
