Investing in the Bajaj Housing Finance IPO: Step-by-Step Guide

Bajaj Housing Finance is a Housing Finance Company (HFC) registered with the National Housing Bank. The company offers financing to individuals and corporate entities for the purchase and renovation of homes and commercial spaces. It also offers loans against property for business and personal needs.  

Other offerings include financing for developers engaged in the construction of residential and commercial properties and rental discounting for developers and HNIs. The company is preparing to launch its IPO from 9th September to 11th September 2024. This IPO will be instrumental in strengthening the company’s capital base to support its future growth. Keep reading to learn more about this IPO. 

Objectives of the IPO

The primary objective of the Bajaj Housing Finance IPO is to augment its capital base to support future business growth. The company plans to use the net proceeds to strengthen its financial position. 

Bajaj Housing Finance IPO Details

Bidding Start Date	9th September 2024
Bidding End Date	11th September 2024
Tentative Listing Date	16th September 2024
Lot Size	214 shares
Price Band Per Share	₹66 to ₹70
Total Issue Size	₹6,560 Crore
Fresh Issue Size	₹3,560 Crore
Offer For Sale	₹3,000 Crore
Listed On	National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

Restated Financial Information Summary

The company’s performance has shown significant growth over the last three financial years. As of 31st March 2024, the company had an equity share capital of ₹67,121.6 Cr. and other equity of ₹55,213.4 Cr., resulting in a net worth of ₹1,22,335.0 Cr. This represents an increase from the previous year’s net worth of ₹1,05,031.9 Cr. and a substantial rise from ₹67,413.6 Cr. in March 2022.  

The profit for the year rose to ₹17,312.2 Cr. in 2024, up from ₹7,096.2 Cr. in 2022. The net asset value per equity share increased to ₹18.2, compared to ₹15.6 the previous year and ₹13.8 two years ago. 

Company Strengths

Bajaj Housing Finance benefits from the following strengths  

• Bajaj Housing Finance benefits from the strong brand equity of the “Bajaj” brand, which is widely recognised as a reliable retail name.

• Ranked as the second-largest HFC in India by AUM, driven by a diversified portfolio and strong growth track record.

• Strategic presence with an omnichannel sourcing approach, enhanced by customer-focused digitisation and technology initiatives.

• Well-defined credit evaluation and risk management practices, resulting in the lowest GNPA and NNPA among peers in Fiscal 2024.

• Access to diversified and cost-effective borrowing sources, supported by top-tier credit ratings from rating agencies.

• Experienced management team complemented by a skilled workforce and the ability to attract and retain talent.

How can you invest in Bajaj Housing Finance’s IPO with HDFC Sky’s One-click IPO feature?

You can conveniently invest in upcoming IPOs with HDFC Sky’s One-Click IPO feature. To apply, you need a trading account with HDFC Sky. Here’s how you can apply: 

1. Launch the app and navigate to ‘Menu’.

1. Under ‘Indian Stocks’, tap on ‘IPO’. All the IPOs currently accepting applications will be listed under the ‘OPEN’ section.

1. Select the Bajaj Housing Finance IPO.

1. Review the IPO details and tap on ‘Apply for IPO’.

1. Enter the number of shares and place a custom bid price.

1. After placing the bid, select ‘Proceed to Pay’.

1. Enter the UPI ID linked to the registered bank account.

1. Open the UPI app and accept the mandate request within the cut-off time.

A confirmation will be displayed on the screen upon successful IPO application. To track your IPO application, go to Menu > Indian Stocks > IPO > Applied.  

Conclusion

The Bajaj Housing Finance IPO presents a compelling opportunity for investors looking to invest in a growing housing finance company with a strong financial track record. The upcoming IPO helps the company strengthen its capital base and allows investors to gain early access to a growing sector. Additionally, through HDFC Sky’s One-Click IPO feature, you can seamlessly participate in this offering with a few simple steps. 

HDFC Sky is a stock trading app from HDFC Securities. The app allows you to invest in the stock market through buying and selling shares, mutual fund investments, futures and options trading, and more. You can register on the app using your mobile number and open a Demat and Trading Account.