Bajaj Housing Finance IPO: Date, Price, Details—Should You Apply?

Bajaj Housing Finance Limited, a prominent player in India’s housing finance sector, has recently announced its Initial Public Offering (IPO). The Bajaj Housing Finance IPO date is from September 9 to September 11, 2024.

This upcoming IPO has garnered considerable attention from investors, market analysts, and industry watchers alike. It offers a chance to gain exposure to India’s growing housing finance market, which is driven by factors such as urbanisation, rising disposable incomes, and government initiatives to promote affordable housing.

In the following sections, we’ll delve into the company’s financial metrics, explore the strengths that make this IPO attractive, and discuss the challenges and risks that investors should be aware of.

About Bajaj Housing Finance

Bajaj Housing Finance was established in 2008 and is a non-deposit-taking Housing Finance Company (HFC). It has been registered with the National Housing Bank (NHB) since 2015. Since the 2018 fiscal year, the company has started providing mortgage loans.

The business is a member of the Bajaj Group, a broad conglomerate of businesses with holdings across several industries. To buy and renovate residential and commercial properties, Bajaj Housing Finance offers both individuals and corporations tailored finance solutions. Bajaj Finance Limited has a 100% stake in Bajaj Housing Finance IPO shareholder quota.

The organisation offers a wide range of mortgage products, such as house loans, rent reductions, loans against property (LAP), and developer financing.

Also read: Initial Public Offering (IPO): Types, Benefits, and Upcoming IPOs in 2024

Bajaj Housing Finance IPO details

IPO Date	September 9, 2024, to September 11, 2024
Listing Date	16 September 2024
Face Value	₹10 per share
Price	₹66 to ₹70 per share
Lot Size	214 Shares
Total Issue Size	937,142,858 shares (aggregating up to ₹6,560.00 Cr)
Fresh Issue	508,571,429 shares (aggregating up to ₹3,560.00 Cr)
Offer for Sale	428,571,429 shares of ₹10 (aggregating up to ₹3,000.00 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Shareholding pre issue	7,819,575,273

For more information, refer to the Bajaj Housing Finance RHP. 

Bajaj Housing Finance Financials

Period Ended	30 Jun 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	88,538.83	81,827.09	64,654.14	48,527.08
Revenue	2,208.73	7,617.71	5,665.44	3,767.13
Profit After Tax	482.61	1,731.22	1,257.8	709.62
Net Worth	14,719.91	12,233.5	10,503.19	6,741.36
Reserves and Surplus	4,252.83	5,520.81	3,791.03	1,858.03
Total Borrowing	73,347.06	69,129.32	53,745.39	41,492.32

Bajaj Housing IPO objectives

According to the company’s plans, the primary objective of the Bajaj Housing Finance IPO is to:

Augment Capital Base for Future Business Requirements: The net proceeds from the IPO will be used to strengthen the company’s capital base, enabling it to meet future business requirements for its onwards lending activities. This capital infusion is intended to support the company’s growth and expansion plans in the housing finance sector.

Should you apply for the Bajaj Housing IPO?

When considering whether to apply for the Bajaj Housing Finance Limited IPO, investors should carefully weigh the company’s strengths against its potential risks. 

Reasons to Consider Applying

Strong Financial Growth: Consistent revenue increase from ₹34,817.5M in March 2022 to ₹72,023.6M in March 2024. The company showed significant profit growth, with PAT rising from ₹7,096.2M to ₹17,312.2M in the same period.

Improving Shareholder Returns: EPS growth from ₹1.5 to ₹2.6 between March 2022 and March 2024. Additionally, Return on Net Worth (RoNW) increased from 11.1% to 15.2%, indicating efficient use of equity.

Strengthening Financial Position: BHFL showed consistent growth in both equity and liabilities. The company has been decreasing its debt-equity ratio, suggesting improved financial stability.

Reasons for Caution

Real Estate Market Exposure: Bajaj Housing Finance has been vulnerable to market fluctuations that could impact loan recovery and collateral values.

Regulatory and Economic Risks: The company is susceptible to macroeconomic changes and regulatory shifts in the housing finance sector.

Bottom line

This IPO could be worth considering for risk-tolerant investors looking for exposure to the housing finance sector and comfortable with the associated volatility. However, conservative investors or those with a low-risk tolerance might want to carefully evaluate the potential risks before making a decision.