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PremiumBajaj Housing Finance IPO Updates: Bajaj Housing Finance Limited launched its IPO on September 9 and will end on September 11. The issue is offering shares at ₹66-70. The company has raised ₹1,758 crore from anchor investors and reserved portions for various investor categories, including a special quota for shareholders.
The Bajaj Housing Finance IPO has allocated up to 50% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and a minimum of 35% of the offer is set aside for retail investors.
The second day of the Bajaj Housing Finance IPO saw a surge in subscriptions from investors, employees, and shareholders, leading to impressive subscription numbers.The initial public offer of Bajaj Housing Finance IPO has been subscribed 7.51 times on the second day of subscription today, as per BSE data.
Retail investors' allocation was oversubscribed by 3.84 times, while non-institutional investors' quota received 16.46 times subscription. The qualified institutional buyers (QIBs) section was subscribed 7.46 times. The employee portion saw a subscription of 97%, and the shareholder portion was oversubscribed by 9.55 times.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 2.02 times on the first day of subscription today, as per BSE data.
The portion for retail investors received 1.51 times subscription while the quota for non-institutional investors got subscribed 4.35 times. The qualified institutional buyers (QIBs) part is booked 1.07 times. The employee portion has been subscribed 32%, and Shareholder portion has been subscribed 2.90 times.
Since September 2015, Bajaj Housing Financing has been registered with the National Housing Bank as a non-deposit taking housing financing firm. It provides financing options for buying and remodeling both residential and commercial buildings.
The Reserve Bank of India has classified it as a "upper layer" nonbank financial institution (NBFC). The company offers a wide range of mortgage products, such as house loans, loans secured by real estate, lease rental discounting, and developer financing.
Two home financing businesses that have recently been listed on stock markets are Aadhar home financing and India Shelter Finance.
The second day of the Bajaj Housing Finance IPO saw a surge in subscriptions from investors, employees, and shareholders, leading to impressive subscription numbers.The initial public offer of Bajaj Housing Finance IPO has been subscribed 7.51 times on the second day of subscription today, as per BSE data.
Retail investors' allocation was oversubscribed by 3.84 times, while non-institutional investors' quota received 16.46 times subscription. The qualified institutional buyers (QIBs) section was subscribed 7.46 times. The employee portion saw a subscription of 97%, and the shareholder portion was oversubscribed by 9.55 times.
The initial share sale received bids for 5,46,13,89,782 shares against 72,75,75,756 shares on offer, as per BSE data.
Bajaj Housing Finance announced on Friday that it had received ₹1,758 crore from anchor investors.
Among the anchor investors are the Abu Dhabi Investment Authority, Fidelity, Morgan Stanley, Nomura, Goldman Sachs, JP Morgan India Investment Trust Plc, KOTAK Mahindra MF, SBI MF, UTI MF, and Nippon India MF in addition to the Government of Singapore and SBI Life Insurance Company and ICICI Prudential Life Insurance Company.
On BSE's website, a circular was posted stating that the company has issued 25.11 crore equity shares to 104 funds at ₹70 each, which is the highest price in the price range. This brings the total transaction size to ₹1,758 crore.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 6.32 times on the second day of subscription today, at 16:18 IST, as per BSE data.
The portion for retail investors received 3.71 times subscription while the quota for non-institutional investors got subscribed 15.25 times. The qualified institutional buyers (QIBs) part is booked 3.90 times. The employee portion has been subscribed 93%, and Shareholder portion has been subscribed 9.14 times.
Bajaj Housing looks more promising to long term investors due to its strong business model with high asset quality along with AAA paper and this offer gives investors an opportunity to invest in one of India’s leading players in the housing finance sector. Despite valuations slightly on the higher side we are bullish on the stock as well as the sector it is operating. Hence recommending long term investors to subscribe the issue with both shareholders quota as well as retail quota.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 5.59 times on the second day of subscription today, at 15:24 IST, as per BSE data.
The portion for retail investors received 3.46 times subscription while the quota for non-institutional investors got subscribed 13.84 times. The qualified institutional buyers (QIBs) part is booked 2.87 times. The employee portion has been subscribed 81%, and Shareholder portion has been subscribed 8.10 times.
As of the first quarter of the fiscal year 2025, there were 323,881 active customers at Bajaj Housing Finance, with 83.2% of them being home loan customers. The company's total loan disbursements were ₹120,035.1 million, ₹103,825.2 million, ₹446,562.4 million, ₹343,336.3 million, and ₹261,752.4 million in FY25, FY24, FY23, and FY22, respectively, indicating an expansion in business and market presence, as per brokerage reports.
Bajaj Housing Finance Ltd holds a strategic position in primary mortgage markets, with support from branches, centralized hubs, and active channel partners. Maharashtra stands as a significant market, contributing 32% of AUM and 35.8% of disbursements as of June 30, 2024. The company's omni-channel sourcing strategy integrates physical branches with digital onboarding options, utilizing a dual approach for retail products—direct channels and intermediaries for home loans and LAP. This approach, combined with a robust geographic presence and distribution reach, enables Bajaj Housing Finance to attract a substantial customer base annually, as per brokerage reports.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 4.78 times on the second day of subscription today, at 14:12 IST, as per BSE data.
The portion for retail investors received 3.16 times subscription while the quota for non-institutional investors got subscribed 11.25 times. The qualified institutional buyers (QIBs) part is booked 2.39 times. The employee portion has been subscribed 75%, and Shareholder portion has been subscribed 7.23 times.
“Bajaj Housing Finance possesses the lowest GNPA (0.3%) and NNPA (0.1%) among peers, ensuring excellent asset quality. The non-deposit taking housing finance company is being valued at 3.2x post the IPO fund raise, in line with it peers. However we believe BHFL deserves premium valuations on the back of its higher AUM growth and superior asset quality. Thus we recommend subscribing to the issue," the brokerage said.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 4.01 times on the second day of subscription today, at 12:51 IST, as per BSE data.
The portion for retail investors received 2.85 times subscription while the quota for non-institutional investors got subscribed 9.42 times. The qualified institutional buyers (QIBs) part is booked 1.76 times. The employee portion has been subscribed 68%, and Shareholder portion has been subscribed 5.91 times.
The company's listed peers, according to the DRHP, are PNB Housing Finance (P/E of 12.4), Can Fin Homes (P/E of 12.9), Aadhar Housing Finance (P/E of 18.7), Aavas Financiers (P/E of 3.3), Aptus Value Housing Finance (P/E of 24.6), and Home First Finance (P/E of 24.3). LIC Housing Finance has a P/E of 7.3.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 3.63 times on the second day of subscription today, at 12:15 IST, as per BSE data.
The portion for retail investors received 2.70 times subscription while the quota for non-institutional investors got subscribed 8.68 times. The qualified institutional buyers (QIBs) part is booked 1.16 times. The employee portion has been subscribed 64%, and Shareholder portion has been subscribed 5.52 times.
“The company’s GNPA and NNPA in 3QFY25 was 0.28% and 0.11%. The company has the lowest GNPA and NNPA amongst peers in FY24 which is expected to continue in FY25 along with being the second most profit making HFC ( ₹4.8billion) in India with strong return on average assets and return on average equity for the Q1FY25. We recommend subscribe to the issue as a good long term investment as with the capital raise the bank should be in place to take advantage of the strong demand in the housing finance space," said SMIFS in its report.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 3.42 times on the second day of subscription today, at 11:42 IST, as per BSE data.
The portion for retail investors received 2.57 times subscription while the quota for non-institutional investors got subscribed 8.16 times. The qualified institutional buyers (QIBs) part is booked 1.09 times. The employee portion has been subscribed 61%, and Shareholder portion has been subscribed 5.19 times.
“The company’s Omni-channel sourcing strategy, strong geographic presence, and distribution reach enable it to acquire a large volume of customers every year and it plans to optimise its borrowing costs by diversifying its borrowing profile. The company also intends to leverage technology and analytics to enhance productivity, reduce expenses, improve customer experience, and manage risks. Investors looking to invest can invest in the IPO for the medium to long term," the brokerage stated.
Bajaj Housing Finance IPO consists of an offer for sale (OFS) of equity shares by parent company Bajaj Finance for a total of ₹3,000 crore and a new issue of equity shares up to ₹3,560 crore.
The aim of the share offering is to satisfy the directive from the Reserve Bank of India (RBI) for higher layer non-banking financial organisations (NBFCs) to list on stock exchanges by September 2025.
To meet its future capital requirements, the firm will use the proceeds from the new offer to expand its capital base.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 2.89 times on the second day of subscription today, at 10:54 IST, as per BSE data.
The portion for retail investors received 2.29 times subscription while the quota for non-institutional investors got subscribed 6.41 times. The qualified institutional buyers (QIBs) part is booked 1.08 times. The employee portion has been subscribed 56%, and Shareholder portion has been subscribed 4.32 times.
“The IPO's valuation is reasonable. There is significant anticipation and demand for the IPO. Given the company's strong heritage, financial performance, and market excitement, we recommend subscribing to the IPO for potential listing gains and long-term value appreciation," the brokerage said.
The initial public offer of Bajaj Housing Finance IPO has been subscribed 2.58 times on the second day of subscription today, at 10:15 IST, as per BSE data.
The portion for retail investors received 2.07 times subscription while the quota for non-institutional investors got subscribed 5.59 times. The qualified institutional buyers (QIBs) part is booked 1.07 times. The employee portion has been subscribed 52%, and Shareholder portion has been subscribed 3.74 times.
The brokerage claims that Bajaj Housing Finance reaps the benefits of the illustrious past of the "Bajaj" brand, which is well known as a dependable retail name. Its robust structure for risk management enables it to keep asset quality steady. BHF has guided for a leverage ratio of around 6x–8x and is optimistic that it can sustain steady NIM through borrowing cost optimization. Three times FY25 P/BV (on a diluted basis) is a good price for the IPO. It is advised to subscribe to the issue in light of all the advantages.
Bajaj Housing Finance IPO GMP today is +64. This indicates Bajaj Housing Finance share price were trading at a premium of ₹64 in the grey market, according to investorgain.com.
The estimated listing price of Bajaj Housing Finance share price was indicated at ₹134 apiece, considering the upper end of the IPO price band and the current premium in the grey market, representing an 91.43% increase from the IPO price of ₹70.
After analysing the grey market activities from the last 20 sessions, it is evident that today's IPO GMP is on an upward trend, indicating a strong potential for listing. As indicated by experts on investorgain.com, the GMP ranges from ₹36 to ₹64, with ₹36 being the lowest and ₹64 being the highest.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
