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Bajaj Housing Finance IPO
Bajaj Housing Finance Ltd
₹14,124 /214 sharesMinimum Investment
Bajaj Housing Finance IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 9 Sep ‘24 - 11 Sep ‘24 | ₹14,124 | 214 | ₹66 - ₹70 |
| Issue Size | IPO Doc |
|---|---|
| 6560.00Cr | RHP PDF |
Subscription rate
As of 11 Sep'24, 05:00 PM
| Qualified Institutional Buyers | 209.36x |
| Non-Institutional Investor | 41.37x |
| Retail Individual Investor | 6.81x |
| Employees | 1.94x |
| Shareholder | 17.32x |
| Total | 63.46x |
About Bajaj Housing Finance
Founded in
2008
Managing director
Mr. Atul Jain
Parent organisation
Bajaj Housing Finance Ltd
Strengths & Financials of Bajaj Housing Finance
Strengths
Risks
As of March 31, 2024, the company served 308,693 active customers, with 81.7% being home loan clients. Bajaj Housing Finance’s total loan disbursements reached Rs 44,656.24 crore in FY24, up from Rs 34,333.63 crore in FY23 and Rs 26,175.24 crore in FY22.
The company's extensive network includes 215 branches spread across 174 locations in 20 states and three Union Territories. This ensures access to a broad market.
Bajaj Housing Finance strategically uses self-occupied residential properties as collateral for loan-against-property (LAP) transactions, which helps maintain a lower risk profile while expanding its loan portfolio.
The company has formed partnerships with multiple insurance providers and has been a registered corporate agent with the Insurance Regulatory and Development Authority of India (IRDAI) since December 22, 2023. This registration allows Bajaj Housing Finance to enhance its product offerings to include life, general, and health insurance.
Bajaj Housing Finance has a credit evaluation framework and underwriting processes that effectively manage risk, ensuring that performance across all products remains within acceptable thresholds.
As of March 31, 2024, Bajaj Housing Finance has relationships with 23 banks, ensuring a diversified and reliable funding portfolio. The company has also received approval from the NHB under its refinance scheme.
There was a steady increase in revenue from operations. It rose from Rs 3,766.71 crore in FY22 to Rs 5,664.73 crore in FY23 and reached Rs 7,617.31 crore in FY24. Profit after tax (PAT) has also increased over these years. It rose from Rs 709.62 crore in FY22 to Rs 1,257.8 crore in FY23 and reached Rs 1,731.22 crore in FY24.
The company may experience challenges in fully recovering the collateral value or amounts due from defaulted loans promptly or completely. This could have a negative effect on the business’s operations, cash flows, and financial health.
As of March 31, 2024, Bajaj Housing Finance's total borrowings stood at Rs 69,129.32 crore. Any failure to service or pay back these loans on time could harm the company's business.
A significant portion of the company's home loan portfolio is lent to salaried and self-employed individuals. Factors that adversely impact this segment of customers could heighten the risk of defaults for the company, potentially increasing non-performing assets (NPAs) and slowing the growth of the loan portfolio.
Since their portfolio is heavily exposed to the real estate sector, Bajaj Housing Finance could suffer from impairment losses and other negative impacts on its business if there is a downturn or other adverse developments in the real estate market.
The company's assets under management (AUM) are heavily concentrated in four states—Maharashtra, Karnataka, Telangana, and Gujarat—and the Union Territory of New Delhi. Adverse developments in these regions could negatively affect the company's business performance and financial results.
Bajaj Housing Finance is involved in various legal proceedings. Any adverse judgments in these or future cases could adversely affect the company's operations.
The company also faces concentration risks related to its exposure to specific customers. As of March 31, 2024, loans to its top 10 and 20 largest customers represented 6.1% and 8.5% of total outstanding loans, respectively: 6.5% (top 10) and 9% (top 20) as of March 31, 2023 and 6.1% (top 10) and 8.5% (top 20) as of March 31, 2022. A significant reduction in business from any of these key customers could detrimentally impact the company's business.
Bajaj Housing Finance Financials
*All values are in Rs. Cr
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Application Details of Bajaj Housing Finance IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹66 - 70 | ₹2 Lakh |
| Employee | ₹66 - 70 | ₹2 Lakh |
| Shareholder | ₹66 - 70 | ₹2 Lakh |
| High Networth Individual | ₹66 - 70 | ₹2 - 5 Lakh |
For Bajaj Housing Finance IPO, eligible investors can apply as Regular, Employee & Shareholder.