Applications for the Bajaj Housing Finance IPO will be accepted starting on 9th September 2024 and will remain open till 11th September 2024. The listing is scheduled for Monday, September 16. With 214 shares in the lot, the price band is anticipated to be between ₹66 and ₹70 per share. This means that the minimum investment for a single Lot application would be ₹14,124. We will also cover Bajaj Housing Finance Peers Comparison in this Article.
Bajaj Housing Finance, as the name suggests, is a financial institution specializing in providing various types of Housing loans. Established in 2008, it operates as a Non-Deposit housing finance company. In 2015, Bajaj Housing Finance became registered under the National Housing Finance. Expanding its services, the company ventured into Mortgage Lending in 2018, offering more comprehensive financial solutions.
In 2022, the Reserve Bank of India (RBI) categorized Bajaj Housing Finance as an “Upper Layer” Non-Banking Financial Company (NBFC), recognizing its scale and significance within the financial ecosystem. Their Mortgage Products include Home Loan, loans against Property(Property as a Collateral), Lease Rental Discounting, and Developer Financing.
Bajaj Housing Finance IPO Details
| IPO Dates | 9th September to 11th September |
| Listing Date | Monday, 16th September 2024(Tentative) |
| Price Band | ₹66 to ₹70 per share |
| Lot Size | 214 Shares |
| Face Value | ₹10 per share |
| Minimum Investment | ₹14,124 / 214 shares |
| Total Issue Size | 937,142,858 shares |
| Fresh Issue | 508,571,429 shares |
| Offer for Sale | 428,571,429 shares of ₹10 |
Bajaj Housing Finance IPO Important Dates
| IPO Open Date | Monday, 9th September 2024 |
| IPO Close Date | Wednesday, 11th September, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM, 11th September, 2024 |
| Basis of Allotment | Thursday, 12th September, 2024 |
| Initiation of Refunds | Friday, 13th September, 2024 |
| Credit of Shares into Demat Account | Friday, 13th September, 2024 |
| Listing Date | Monday, 16th September, 2024 |
Bajaj Housing Finance IPO Objective of the Issue
- The Company proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting(increasing) its capital base to meet future business requirements of the company towards onward lending.
- In Addition, the company expects to receive the benefits of listing the equity shares on the Stock Exchanges, including enhancement of the company’s brand name and the creation of a public market for Equity Shares in India.
Bajaj Housing Finance IPO Reservations
| Qualified Institutional Buyers (QIBs) | Not more than 50.00% of the Net offer |
| Retail Investors | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Bajaj Housing Finance Shareholder’s Quota
The Record Date for the Shareholders of Bajaj Finserv and Bajaj Finance to apply under the Shareholder’s quota was 30th August 2024 i.e. those who bought Bajaj Finance or Bajaj Finserv till 29th August 2024 will be considered eligible in Shareholder’s Category because we have T+1 settlement mechanism.
Bajaj Housing Finance IPO GMP
Bajaj Housing Finance IPO GMP is expected to be from 80% to 100% as of publication of this post. For the Latest Updates on Bajaj Housing Finance IPO GMP and Listing Price range estimations Please Visit
Bajaj Housing Finance IPO GMP UPDATES
Bajaj Housing Finance Product Segments
| 2024 | 2023 | 2022 | |
| ALL AUM ₹ in millions | |||
| Home Loan | 528,196(57.8%) | 427,068.6(61.7%) | 345,448.5(64.8%) |
| Loan Against Property | 95,679.3(10.5%) | 78,168.9(11.3%) | 74,052.8(13.9%) |
| Lease Rental Discounting | 176,368.0(19.3%) | 112,594.8(16.3%) | 68,694.2(12.9%) |
| Developer Finance | 95,993.3(10.5%) | 56,693.2(8.2%) | 28,987.0(5.4%) |
| Other Loans | 17,467.4(1.9%) | 17,753.5(2.5%) | 16,034.7(3.0%) |
For the year 2024, out of the Total AUM, 57.8% goes to the Home Loan Category. So, Clearly Home Loan is their main Focus. 2nd Highest is Lease Rental Discounting which is a Loan against Future cash flow that a person can earn from House Rent accounts for 19% of total Assets Under Management (AUM).
The Company has been categorized as an “Upper Layer” NBFC by RBI, which means it is an NBFC that falls under the category “too big to fail”. And that is the reason why RBI wants to ensure these big Housing finance companies do not fail and for that obviously, RBI is going to put NBFCs through more Stringent and Strict Norms.
Housing Finance Industry Analysis
- The Indian Housing finance market clocked a healthy CAGR of 13.1% (growth in credit outstanding) during Fiscals 2019 to 2023. Healthy demand and a greater number of players entering the segment.
- CRISIL expects the overall housing segment to grow at a CAGR of 13% to 15% from Fiscal year 2024 to Fiscal Year 2027.
- According to the CRISIL Report, India has very Low penetration in terms of Housing finance as compared to other economies which shows a very high potential for the Expansion of Indian housing finance companies.
- The Union Budget of 2024-2025 announced a 17.1% rise in capital expenditure in Fiscal 2025 at ₹11.1 trillion from ₹ 9.5 trillion in Fiscal 2024, with the infrastructure sector continuing to get the highest allocation(24.5% of total budgetary capex).
Bajaj Housing Finance Peers Comparison
| Company | Total Income(₹ in million) | Face Value(₹ per share) | P/E | P/B | Basic EPS(₹) | RoNW(%) | NAV(₹ in million) | NAV per Equity Share(₹) |
| Bajaj Housing Finance Limited | 76,177.1 | 10 | N/A | N/A | 2.6 | 15.2% | 122,335 | 18.2 |
| LIC Housing Finance Limited | 272,778.0 | 2 | 7.7 | 1.2 | 86.5 | 16.2% | 314,800.6 | 572.3 |
| PNB Housing Finance Limited | 70,570.9 | 10 | 14.1 | 1.4 | 58.4 | 11.6% | 149,744.4 | 576.6 |
| Can Fin Homes Limited | 35,246.9 | 2 | 15.0 | 2.6 | 56.4 | 18.8% | 43,438.5 | 326.2 |
| Aadhar Housing Finance | 25,869.8 | 10 | 21.4 | 3.8 | 19.0 | 18.4% | 44,497.5 | 104.3 |
The return on Net Worth for Bajaj Housing Finance if we check is 15.2%, which is around the average of its peers.
Bajaj Housing Finance IPO Prospectus
- Bajaj Housing Finance IPO DRHP
- Bajaj Housing Finance IPO RHP
- Anchor Investors in Bajaj Housing Finance IPO
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