- Bid /Offer Period will open on Monday, September 09, 2024 and close on Wednesday, September 11, 2024
- The Anchor Investor Bidding Date shall be Friday, September 06, 2024
- Bids can be made for a minimum of 214 Equity Shares and in multiples of 214 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, SEPT 5
Bajaj Housing Finance Limited, a 100% subsidiary of Bajaj Finance, on Wednesday announced its IPO is set to open for public subscription on Monday, September 9 and close on Wednesday, September 11.
Bajaj Housing Finance IPO is a book-built issue of ₹6,560 crore comprising a combination of fresh issue of equity shares worth ₹3,560 crore and an offer-for-sale (OFS) component of 42.86 crore equity shares aggregating to ₹3,000 crore by promoter Bajaj Finance Ltd.
The anchor investor bidding date shall be on Friday, September 06, 2024.
The Price band of the Offer is ₹66 to ₹70 per Equity Share.
Bids can be made for a minimum of 214 Equity Shares and in multiples of 214 Equity Shares thereafter.
At the upper end of the price band, the company is valued close to ₹58,000 crore, making it the most valuable housing finance company in India.
For subscription by Employee, reservation portion includes Equity Shares aggregating up to ₹200 crore and for shareholders of Bajaj Finance Limited and Bajaj Finserv Limited, reservation portion includes Equity Shares aggregating up to ₹ 500 crore.
Atul Jain, Managing Director of Bajaj Housing Finance, said, “The housing finance market in India is estimated to be over ₹30 lakh crore, while the market for loans against property (LAP) stands at more than ₹10 lakh crore, according to some estimates. In Gujarat, we have financed many developers both in urban and rural areas.”
Company’s exposure in affordable housing segment
Answering a query on the company’s exposure in affordable housing segment, Jain said, “Affordable housing is a significant growth area due to the increasing demand for home loans in this segment. While our focus has traditionally been on the salaried segment, we are actively participating in the affordable housing space. We plan to balance our portfolio to cater to all segments, including affordable housing, though the pace of growth may vary.”
Founded in 2008, Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans since the financial year 2018.
Bajaj Housing Finance provides customized financial solutions to individuals and corporates for the purchase and renovation of homes and commercial spaces. Its mortgage product range is comprehensive and includes home loans, loan against property, rent concessions, and developer finance.
Bajaj Housing Finance had 308,693 active customers, of which 81.7 per cent were home loan customers, as of March 31, 2024. It has a network of 215 branches in 174 locations across 20 states and three union territories, overseen by six centralized retail loan review centers and seven centralized loan processing centers.
The Company intends to utilize the Net Proceeds of the Offer towards augmenting its capital base to meet future business requirements of the Company towards onward lending.
Bajaj Housing Finance reported a net profit of ₹482.61 crore with a revenue of ₹2,208.73 crore for the three months ended on June 30 2024. Its net profit came in at ₹1,731.22 crore with a revenue of ₹7,617.71 crore for the financial year ended on March 31, 2024.
Shares of the company shall be listed on both BSE and NSE.
Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited and IIFL Securities Limited are the Book Running Lead Managers to the Offer.
