Business News Desk – Bajaj Housing Finance, the housing finance company of Bajaj Group, received a record bid of Rs 3.15 lakh crore for its IPO. Now today its spectacular listing has also made investors happy. Its Rs 6560 crore IPO received a total bid of more than 67 times. Shares have been issued at a price of Rs 70 under the IPO. Today it has entered at Rs 150 on BSE and Rs 150 on NSE, that is, IPO investors have got a listing gain of 114.28 percent (Bajaj Housing Finance Listing Gain).
What is the advice of experts?
Narendra Solanki, Head (Equity Research-Fundamental), Anand Rathi Shares and Stock Brokers, has advised investors that they can also hold it for a long period. According to Narendra, the company is trying to increase its dominance in the entire market by strengthening its relationship with existing customers as well as adding new customers and entering new areas. According to Narendra, there is no need to panic about its premium valuation as it is getting support from the rapidly increasing AUM growth. However, Rajesh Agarwal, Research Head, AUM Capital, has advised investors to book some profits. VLA Ambala, co-founder of SMT and SEBI-registered research analyst, has also advised investors to withdraw half the profit and hold the rest of the investment for a long period. Prashant Tapase, Senior Vice President (Research), Mehta Equity, has advised conservative investors to book profits. Also, he has advised long-term investors to hold. Brokerage SMIFS is also bullish on it as its gross NPA and net NPA were the lowest compared to peers in FY24. According to the brokerage, its growth is expected to remain strong in the future as well.
Bajaj Housing Finance IPO got a strong response
Investors invested in Bajaj Housing Finance’s ₹6,560.00 crore IPO between 9-11 September in the price band of ₹66-₹70 and in lots of 214 shares. The issue received a strong response from investors of all categories. Initially, the response from employees was lukewarm and the portion reserved for them was not fully filled for two days, but then they showed great enthusiasm on the last day. Overall, the issue was subscribed 67.43 times. In this, the portion reserved for qualified institutional buyers (QIB) was filled 222.05 times, the portion for non-institutional investors (NII) 43.98 times, the portion for retail investors 7.41 times, the portion for employees 2.13 times and the quota for shareholders 18.54 times.
Under this IPO, new shares worth Rs 3,560.00 crore have been issued. Apart from this, 42,85,71,429 shares with face value of Rs 10 have been sold under the Offer for Sale window. The shares will be sold under the Offer for Sale by its parent company Bajaj Finance. The money for the Offer for Sale has been received by the shareholders who sold the shares. At the same time, the money raised through new shares will be used to increase the capital base of Bajaj Housing Finance.
Bajaj Housing Finance Details
Bajaj Housing Finance, formed in 2008, is a non-deposit taking housing finance company (HFC). It is registered with the National Housing Bank (NHB) since 2015 and has been providing mortgage loans since financial year 2018. RBI has declared it as an upper layer NBFC in India. This move by RBI has led to the IPO of Bajaj Housing Finance because according to RBI rules, it is mandatory to list the shares within three years after becoming an upper layer NBFC and this deadline for Bajaj Finance was to end in September 2025.
This Bajaj Group company offers services like home loans, loan on property mortgage (LAP- Loan Against Property), rent concession and developer finance. As per the data till March 2024, it had 3,08,693 active customers, out of which 81.7 percent were home loan holders. It has 215 branches at 174 locations in 20 states and 3 union territories of the country. It has six centralized retail loan review centers and seven central loan processing centers.
Talking about the financial health of the company, it has continuously strengthened. In the financial year 2022, it had a net profit of Rs 709.62 crore, which jumped to Rs 1,257.8 crore in the next financial year 2023 and reached Rs 1,731.22 crore in the financial year 2024. During this period, the company’s revenue grew at a compound growth rate (CAGR) of more than 42 percent annually to Rs 7,617.71 crore. Talking about this financial year 2024-25, in the first quarter April-June 2024, it has earned a net profit of Rs 482.61 crore and a revenue of Rs 2,208.73 crore.
