Bajaj Housing Finance Limited IPO3 min read
This highly anticipated Bajaj Housing Finance Limited (BHFL) IPO is set to raise a whopping ₹7,000 crores, a blend of fresh equity worth ₹4,000 crores and an offer for sale amounting to ₹3,000 crores. As the market gears up for what promises to be one of the most exciting IPOs of 2024, let’s dive into the details that make this IPO a must-watch.
The Big Picture
Founded in 2008 and a part of the prestigious Bajaj Group, Bajaj Housing Finance has established itself as a formidable player in the housing finance sector. Registered with the National Housing Bank (NHB) since 2015, BHFL offers a comprehensive range of mortgage products, from home loans to developer finance. The company’s extensive network spans 215 branches across 20 states and three union territories, serving over 308,000 active customers as of March 31, 2024. Impressive, right?
But here’s where it gets better. BHFL’s financials are solid. The company reported a 34% increase in revenue and a 38% rise in profit after tax (PAT) between FY 2023 and FY 2024. With assets valued at ₹81,827 crores and a robust net worth of ₹12,233 crores, this company is built on a strong foundation.
IPO Details: What You Need to Know
1. IPO Price band is Rs. 66 to Rs. 70 per share
2. It consists of a new issue of 50.86 crore shares, valued at ₹3,560 crore, and an offer for sale (OFS) component of 42.86 crore equity shares, valued at ₹3,000 crore.
3. The subscription window for Bajaj Housing Finance IPO will be open between September 9 and 11. The share allotment status in the public offer is expected to be finalised by September 12.
4. The minimum lot size for application in Bajaj Housing Finance IPO is 214 shares, totalling an investment of ₹14,980 at the upper price band.
Shareholder’s Category
The IPO will have a special quota for shareholders of Bajaj Finserv and Bajaj Finance, both of whom are classified as ‘promoters’. Bajaj Finance has a 100 percent stake in Bajaj Housing, while Bajaj Finserv holds 51.34 percent in Bajaj Finance.
Why Should You Care?
BHFL’s IPO is not just another public offering; it’s a gateway to investing in a company with a proven track record and a bright future. With a solid financial foundation, a vast customer base, and the backing of the Bajaj brand, BHFL is poised for growth. The funds raised will primarily be used to augment the company’s capital base, setting the stage for future expansion.
The Verdict: To Invest or Not to Invest?
In a nutshell, the Bajaj Housing Finance IPO offers an attractive opportunity for investors looking to capitalize on the booming housing finance sector. With the backing of the Bajaj Group, robust financials, and a buzz that’s hard to ignore, this IPO could very well be the golden ticket you’ve been waiting for.
Disclaimer: This analysis is based on current market trends and information available at the time of writing. Investors are advised to conduct their research and consult with a financial advisor before making any investment decisions.
Source: Dhwani Patel, SEBI registered research analyst: (Reg. No. INH200008608)
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