Bajaj Housing Finance IPO: Bajaj Housing Finance Ltd, a 100% subsidiary of Bajaj Finance, launched its Initial Public Offering (IPO) today, September 9.
This IPO was primarily driven by the company’s inclusion in the Reserve Bank of India’s (RBI) Upper Layer Non-Banking Financial Companies (NBFC) list, which brings significant implications for Bajaj Finance as investors analyze its individual financial and operational performance.
As the second-largest housing finance company in India, Bajaj Housing Finance holds assets under management (AUM) of ₹97,071 crore as of June 2024. The ₹6,560 crore IPO includes both a fresh issue of 50.86 crore equity shares, valued at ₹3,560 crore, and an offer-for-sale (OFS) of 42.86 crore shares worth ₹3,000 crore.
Priced between ₹66 and ₹70 per share, the IPO values Bajaj Housing Finance at approximately 3.2 times its June 2024 book value after dilution and adjustments for rights share allocation.
Bajaj Housing Finance IPO
Bajaj Housing Finance Limited launched its Initial Public Offering (IPO) on Monday, with plans to raise Rs 6,560 crore through the public issue.
The company was established in 2008 and is part of the well-known Bajaj Group. It is a non-deposit-taking Housing Finance Company (HFC), which means it provides loans but does not accept deposits from the public. Bajaj Housing Finance has been officially registered with the National Housing Bank (NHB) since 2015, making it a recognized and trustworthy financial institution.
In 2018, it started offering mortgage loans, helping people and businesses to finance the purchase or renovation of homes and commercial properties.
The company’s services are tailored to meet the specific needs of both individual buyers and business owners, whether they are purchasing their first home, renovating a property, or investing in commercial real estate.
The money raised from this IPO will help Bajaj Housing Finance strengthen its capital base. This means it will have more funds available to continue growing, supporting its current business operations, and preparing for future opportunities.
By boosting its financial resources, the company will be better positioned to serve its customers and meet the increasing demand for housing loans and financial solutions.
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Bajaj Housing Finance IPO Important Details
The following details you should know about Bajaj Housing Finance IPO:
IPO Subscription Period: The Bajaj Housing Finance IPO will be open for investors to apply from September 9 to September 11, 2024. During this time, people can submit their applications to purchase shares in the company.
Price Range (Price Band): The price for each share of Bajaj Housing Finance will be between Rs 66 and Rs 70. This means investors will have to pay within this range, depending on the final price decided at the end of the IPO.
Total Funds to Be Raised: Through this IPO, Bajaj Housing Finance aims to raise a total of Rs 6,560 crore. This money will help the company grow and invest in future projects.
Offer Structure:
- The IPO consists of two parts: a fresh issue and an offer for sale.
- The fresh issue will involve 50.86 crore new shares being sold, raising Rs 3,560 crore. The company will use this money for its operations.
- The offer for sale will involve 42.86 crore existing shares being sold by current shareholders, raising Rs 3,000 crore.
Minimum Investment (Lot Size):
- For retail investors (individuals), the minimum number of shares you can apply for is 214 shares, which means you need to invest at least Rs 14,980.
- For small non-institutional investors (sNII), the minimum is 14 lots, which equals 2,996 shares and a total investment of Rs 209,720.
- For large non-institutional investors (bNII), the minimum is 67 lots, or 14,338 shares, requiring an investment of Rs 1,003,660.
Date of Share Allotment: After the subscription period, the company will finalize who gets the shares on September 12, 2024. Investors can check if they have been allotted shares on this date.
Listing Date: Once the shares are allotted, they will be listed and available for trading on the stock exchanges on September 16, 2024. This is when investors can start buying or selling them in the market.
Registrar: The IPO will be managed by Kfin Technologies Limited, which will handle the entire process of applications, share allotments, and refunds, ensuring everything runs smoothly.
Stock Exchanges: The shares of Bajaj Housing Finance will be listed on two major stock exchanges in India: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Grey Market Premium (GMP): As of September 9, 2024, the Grey Market Premium for the Bajaj Housing Finance IPO is Rs 57. This indicates that the estimated listing price could be around Rs 127 per share, representing an expected gain of 81.43% for those who buy at the IPO price.
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Bajaj Housing Finance IPO FAQs
Q.1. What is the Bajaj Housing Finance IPO?
Ans. The Bajaj Housing Finance IPO is an Initial Public Offering launched by Bajaj Housing Finance Ltd. on September 9, 2024. The company aims to raise Rs 6,560 crore by offering new shares to the public and selling existing shares held by current shareholders.
Q.2. What is the price range for Bajaj Housing Finance IPO shares?
Ans. The shares of Bajaj Housing Finance are priced between Rs 66 and Rs 70 each. This range determines how much investors will need to pay per share during the IPO subscription period.
Q.3. How long will the Bajaj Housing Finance IPO be open for subscription?
Ans. The IPO will be open for subscription from September 9 to September 11, 2024. Investors can apply for shares within this period.
Q.4. What is the minimum investment required to participate in the IPO?
Ans. For retail investors, the minimum investment is for 214 shares, costing Rs 14,980. For small non-institutional investors (sNII), the minimum is 2,996 shares, or Rs 209,720. Large non-institutional investors (bNII) must invest in a minimum of 14,338 shares, totaling Rs 1,003,660.
Q.5. When will Bajaj Housing Finance IPO shares be listed on the stock exchanges?
Ans. The shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 16, 2024, after the allotment process is completed on September 12, 2024.
