About Bajaj Housing Finance
Bajaj Housing Finance, a non-deposit-taking Housing Finance Company (HFC), has been part of the Bajaj group since 2008. Registered with the National Housing Bank in 2015, the company began offering mortgage loans in 2018. It provides tailored financial solutions for both individuals and businesses, focusing on home and commercial property purchases and renovations.
The company’s mortgage products include home loans, loans against property (LAP), lease rental discounting, and developer financing. As of March 31, 2024, Bajaj Housing Finance served 308,693 active customers, with 81.7% being home loan clients. The company operates 215 branches across 174 locations in 20 states and three union territories. It manages loan approvals through six centralized underwriting hubs and seven processing hubs.
Issue size
| Funds raised in the IPO | Amount |
|---|---|
| Overall | ₹6560 crores |
| Fresh Issue | ₹3560 crores |
| Offer for sale | ₹3000 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
|---|---|
| Building capital base to meet future business requirements | 3560 (100%) |
Financials
| Financial year ended | March 2022 | March 2023 | March 2024 |
|---|---|---|---|
| Total assets | 48527.1 | 64654.1 | 81827.1 |
| Revenue | 3767.1 | 5665.4 | 7617.7 |
| Profit After Tax | 709.14 | 1261.95 | 1730.31 |
What are the various shareholder categories one can apply?
| Categories | Lot Range | Min Amount | Max Amount |
|---|---|---|---|
| Retail | 1 – 13 | 14,980 | 194,740 |
| Employee | 1 – 33 | 14,980 | 4,94,340 |
| Shareholder | 1 – 13 | 14,980 | 194,740 |
| HNI (Small) | 14 – 66 | 209,720 | 988,680 |
| HNI | 67 or more | 1,003,660 | NA |
- Note: The minimum application amount is based on the lower end of the price band and the maximum amount is based on the upper end of the price band. IPO application up to ₹5 lakhs is allowed through UPI and for amounts exceeding ₹5 lakhs, ASBA should be used.
Note: You can only make 1 application per PAN per category (either using UPI for applications below 5 lakhs and net banking ASBA for applications above 5 lakhs.
What categories can eligible Bajaj finance or Bajaj finserve shareholders apply?
Those investors who have held Bajaj finance or Bajaj finserve shares on 30th August (date of RHP filing) can apply in the following categories:
Shareholder + Retail
(or)
Shareholder + HNI (Small)
(or)
Shareholder + HNI
To know how to apply in multiple categories, check the support article here.
Strengths
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Distinguished heritage of the “Bajaj” brand: The Company belongs to the Bajaj group, a prominent Indian conglomerate known for its diverse business interests across various sectors. As a wholly-owned subsidiary of Bajaj Finance Limited, the company is well-positioned to tap into its extensive experience in scaling financial services.
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Strong track record: The company is the second largest HFC in India (in terms of AUM) having demonstrated a consistent growth trajectory with a diversified portfolio over its seven-year operational history, even amid challenging events such as the NBFC crisis, the downturn of key industry players and the unprecedented impacts of COVID-19.
According to the CRISIL report:
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It is the largest non-deposit-taking HFC (in terms of AUM) in India within seven years of commencing mortgage operations.
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second largest HFC in India with an AUM of ₹970,713.3 million.
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second most profit-making HFC in India with a strong return on average assets and return on average equity for Fiscal 2024 and three months ended June 30, 2024
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lowest GNPA ratio of 0.28% and NNPA ratio of 0.11%, among large HFCs in India.
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The company’s strategic focus is on low-risk and fast-growing home loan customers. As of March 31, 2024, home loans contributed 57.8% of its AUM, of which 87.5% pertained to salaried customers, 4.3% self-employed professional customers, and 8.2% to self-employed non-professional customers.
Risks
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Volatility in interest rates: The company may be impacted by volatility in interest rates, which could cause its Net Interest Income, Net Interest Margins, and the value of fixed income portfolio to decline and adversely affect the business, results of operations, cash flows, and financial condition.
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Potential liquidity concerns: The company may face potential liquidity risks due to mismatches in the maturity of its assets and liabilities. Such mismatches, where the maturity of assets and liabilities do not match, are a key financial risk typical for a company in the business of lending.
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Reliance on the real estate sector: The Company is significantly exposed to real estate and any significant downturn or any adverse developments in the real estate sector may lead to an increase in impairment losses and adversely affect the business.
Schedule of Bajaj Housing Finance
| Particulars | Date |
|---|---|
| Issue open date | 09 Sep 2024 |
| Issue close date | 11 Sep 2024 |
| Price range | ₹66 - 70 |
| Minimum lot size | 214 shares and more |
| UPI mandate deadline | 11 Sep 2024 (5 PM) |
| Allotment finalization | 12 Sep 2024 |
| Refund initiation | 13 Sep 2024 |
| Share credit | 13 Sep 2024 |
| Listing date | 16 Sep 2024 |
| Mandate end date | 26 Sep 2024 |
| Lock-in end date for anchor investors (50%) | 12 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 11 Dec 2024 |