Bajaj Housing Finance Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹70
Per ShareLot Size
214 Shares
Minimum Investment
₹14,980
Issue Size
₹6,560 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Bajaj Housing Finance Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Issue Type
Book Building
ISIN
INE377Y01014
About the Company
Bajaj Housing Finance Limited is a non-deposit taking Housing Finance Company registered with the National Housing Bank since September 24, 2015, offering tailored financial solutions for purchasing and renovating residential and commercial properties. It has also been identified and categorized as an "Upper Layer" NBFC by the RBI in India and its comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing. The Company primarily focus on individual retail housing loans, supported by a diverse range of commercial and developer loans, serving customers from homebuyers to large developers.
Industry Overview
According to the CRISIL Report, India has very low penetration in terms of housing finance as compared to other economies which shows a high potential for expansion of Indian housing finance companies. The Indian housing finance market clocked a healthy CAGR of 12.6% (growth in credit outstanding) during Fiscals 2019 to 2023, on account of rise in disposable incomes, healthy demand, and greater number of players entering the segment. Going forward, CRISIL MI&A expects overall housing segment to grow at a CAGR of 13-15% from Fiscal 2023 to Fiscal 2027.
Company History
Bajaj Housing Finance Limited was originally incorporated as `Bajaj Financial Solutions Limited' at Pune, Maharashtra as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated June 13, 2008, issued by the Registrar of Companies, Maharashtra at Pune ("RoC") and was granted its certificate for commencement of business on September 24, 2008 by the RoC. Thereafter, the name of the Company was changed to `Bajaj Housing Finance Limited' with a fresh certificate of incorporation dated November 14, 2014 issued by the Assistant Registrar of Companies, Pune. The Company has also been granted a certificate of registration dated September 24, 2015 by the NHB bearing registration number 09.0127.15 to commence/carry on the business of a housing finance institution without accepting public deposits.
Products & Services
- Bajaj Housing Finance Limited is a non-deposit taking Housing Finance Company.
Growth Strategy
- Continue to leverage technology and analytics to enhance productivity, reduce expenses, improve customer experience and manage risks.
- Diversifying and strengthening market presence with strategic customer focus and comprehensive risk management.
- Continue to diversify our borrowing profile to optimize borrowings costs.
- Continue to attract, train and retain talented employees.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 937,142,856* equity shares of face value of Re. 10 each ("Equity Shares") of Bajaj Housing Finance Limited ("Company") for cash at a price of Rs. 70 per equity share (including a share premium of Rs. 60 per equity share) ("Offer Price") aggregating to Rs. 6560.00 crores (the "Offer") comprising a fresh issue of 508,571,428* equity shares of face value of Rs. 10 each aggregating to Rs. 3560.00 crores ("Fresh Issue") and an offer for sale (the "Offer for Sale") of 428,571,428* equity shares of face value of Rs. 10 each aggregating to Rs. 3000.00 crores by Bajaj Finance Limited ("Promoter Selling Shareholder") ("Offered Shares"). The offer constituted 11.3% of the post-offer paid-up equity share capital of the company. the offer included a reservation of 28,571,428* equity shares of face value of Rs. 10 each, aggregating to Rs. 200.00 crores (constituting 0.3% of the post-offer paid-up equity share capital) for subscription by eligible employees ("Employee Reservation Portion") and a reservation of 71,428,571* equity shares of face value of Rs. 10 each, aggregating to Rs. 500.00 crores (constituting 0.9% of the post-offer paid-up equity share capital) for subscription by eligible shareholders ("Shareholders Reservation Portion"). The offer less the employee reservation portion and the shareholders reservation portion is hereinafter referred to as the "Net Offer". The offerand the net offer constituted 11.3% and 10.1% of the post-offer paid-up equity share capital of the company, respectively. The face value of the equity shares is Rs. 10 each. The offer price is 7 times the face value of the equity shares. *Subject to finalisation of basis of allotment
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- The Company has a distinguished heritage of the "Bajaj" brand, which enjoys widespread recognition as a reliable retail brand with strong brand equity.
- The Company is the second largest HFC in India (in terms of AUM) with a track record of strong growth driven by a diversified portfolio.
- The Company has a strategic presence with omni-channel sourcing strategy, driven by customer-focused digitization initiatives and technology.
- The COmpany has well defined credit evaluation and risk management practices resulting in lowest GNPA and NNPA among its Peers in Fiscal 2024.
- The Company has access to diversified and cost-effective borrowing sources facilitated by the highest possible credit ratings from rating agencies.
- Its inability to fully recover the collateral value or the sums due from defaulted loans promptly or entirely, could adversely affect its business, results of operations, cash flows and financial condition.
- If the company is unable to control the level of Gross Non-Performing Assets/Stage 3 Assets in its portfolio effectively or if the company is unable to maintain adequate provisioning coverage or if there is any change in regulatorily-mandated provisioning requirements, its financial condition and results of operations could be adversely affected.
- If the company is unable to comply with the requirements stipulated by Reserve Bank of India, it could have a material adverse effect on its business, results of operations, cash flows and financial condition.
- Its assets under management are concentrated in four states and the union territory of New Delhi and any adverse developments in these regions could have an adverse effect on its business, results of operations, cash flows and financial condition.
- The company has allotted Equity Shares to Bajaj Finance Limited, one of its Promoters, in Fiscal 2023 at a price that will be lower than the Offer Price.