2024-09-11 13:28:27
New Delhi: A big opportunity is opening today for those who invest in IPOs. Bajaj Housing Finance’s Rs 6,560 crore IPO is opening for subscription on Monday. Bids can be placed on it till September 11. For this, the company has fixed the price band at Rs 66-70 per share. In the IPO of this company promoted by Bajaj Finance and Bajaj Finserv, fresh equity shares worth Rs 3,560 crore will be issued while shares worth Rs 3,000 crore will be sold through OFS. Before the issue opened, Bajaj Housing Finance raised Rs 1,758 crore from anchor investors. The anchor investors of the company include prominent names like Government of Singapore, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura and JP Morgan. 50 per cent of this issue is reserved for qualified institutional buyers while 15 per cent is for non-institutional investors. 35 per cent has been kept for retail investors. Its lot size is 214 shares. That means retail investors will have to invest a minimum of Rs 14,980. A retail investor can bid for a maximum of 13 lots (Rs 194,740). Allotment of shares to successful investors will be done on September 12 while refund may come the next day. Its listing is likely to happen on September 16.
This IPO created a stir in the grey market even before opening, signs of listing at more than 100% premium, know full details
How much is GMP
The company says that it will strengthen its capital base with the money raised from this IPO. This will help in future expansion of business, especially further lending. Bajaj Housing Finance is an HFC registered with the National Housing Bank since September 2015. The company provides financial solutions for the purchase and renovation of housing and commercial assets. RBI has also classified it as an upper-level NBFC. The company’s main focus is on retail residential loans. In the financial year 2023-24, the net profit of the company was Rs 1,731 crore, which is 38% more than FY 2023.
In the grey market, the company’s unlisted shares are trading at a premium of Rs 51-52, which is about 73% more than the issue price. That is, this share is expected to be listed at Rs 122. Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book running lead managers of this issue. KFin Technologies Limited is the registrar of this issue while Cyril Amarchand Mangaldas is the legal advisor. 87.5% of the customers taking home loans from Bajaj Finance are from the salaried class. This is the reason that the position of Bajaj Housing Finance is much better in terms of bad loans.
If you invest in IPO then be ready, 14 years old record can be broken this month!
What should investors do?
According to rating agency Crisil Ratings, the growth of the country’s housing segment is expected to be 13-15% between FY 2024 and 2027. Bajaj Housing Finance is one of the largest housing finance companies in the country. In FY 2024, the company’s total assets were estimated at Rs 291,204.63 crore. During this period, the company’s asset under management is Rs 91370.4 crore. Experts say that bidding in Bajaj Finance’s IPO can be beneficial for investors. The reason for this is that Bajaj Housing Finance’s earnings per share in FY 2024 was 2.6 while in FY23 it was 1.9.
Disclaimer: The suggestions given in this analysis are those of individual analysts or broking companies, not of NBT. We advise investors to consult certified experts before making any investment decision. As stock market conditions can change rapidly.