Bajaj Housing Finance: IPO and Company Overview

Introduction to Bajaj Housing Finance

Bajaj Housing Finance, a part of the Bajaj Group, was established in 2008 and has been growing steadily as a non-deposit-taking Housing Finance Company (HFC). Registered with the National Housing Bank (NHB) since 2015, the company began offering mortgage loans in 2018. Its key offerings include home loans, loans against property (LAP), lease rental discounting, and developer financing. Bajaj Housing Finance focuses on individual retail housing loans, serving primarily salaried customers, who make up 57.8% of their assets under management (AUM).

Bajaj Housing Finance IPO Overview

Bajaj Housing Finance is set to go public, with its IPO open for bidding from September 9 to September 11, 2024. The IPO has generated significant interest, with a price band set between ₹66 and ₹70 per share. The company aims to raise ₹6,560 crore through this offering, with a fresh issue of ₹3,560 crore and an offer for sale of ₹3,000 crore. The company plans to use the funds raised to strengthen its capital base and support future lending requirements.

• IPO Timeline:
  • Allotment Date: September 12, 2024
  • Listing Date: September 16, 2024
  • Registrar: Kfin Technologies

Financial Performance and Fundamentals
As of March 2024, Bajaj Housing Finance reported an AUM of ₹913.7 billion, reflecting a robust compound annual growth rate (CAGR) of 30.9%. The company has a low-risk portfolio, with 75.5% of its housing loans being extended to individuals with high credit scores. Their pre-IPO market capitalization was estimated at ₹58,297 crore, with a price-to-earnings (P/E) ratio of 31.62.

Key financial metrics include:

• Return on Net Worth (RoNW): 15.2%
• Return on Capital Employed (RoCE): 22.7%
• Debt-to-Equity Ratio: 5.7

Company History and Growth
Founded in 2008, Bajaj Housing Finance has rapidly scaled its operations in the housing finance sector. It is recognized as an upper-layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI) due to its expansive asset size and critical role in the financial ecosystem. Bajaj Housing Finance has established itself as a leader in providing financial solutions for homebuyers and commercial property acquisitions, leveraging the strength of the Bajaj Group.

Future Outlook
Bajaj Housing Finance aims to continue its strong growth trajectory by utilizing the proceeds from the IPO to expand its capital base. This will allow the company to meet rising demand in India’s housing market while maintaining a conservative risk profile. Additionally, its robust financial standing and consistent growth make it a highly attractive investment in the financial services sector​(

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