Bajaj Housing Finance Limited (BHFL) made an outstanding debut on Dalal Street, listing at a premium of 114.29%, with shares priced at ₹150 on both BSE and NSE, compared to the issue price of ₹70 per share. The strong demand continued, as the stock experienced further buying after the listing, signaling a robust market for the Bajaj Group-backed company.

Company Overview

Bajaj Housing Finance Limited, classified as an ‘Upper-Layer NBFC’ by the Reserve Bank of India (RBI) under Scale-Based Regulations, is a 100% subsidiary of Bajaj Finance Limited, one of the most diversified Non-Banking Financial Companies (NBFCs) in India. Headquartered in Pune, BHFL provides finance to individuals and corporates for the purchase and renovation of homes and commercial spaces. Additionally, the company offers loans against property for business or personal needs, and working capital finance for business expansion. BHFL also extends financial services to real estate developers involved in constructing residential and commercial properties, along with lease rental discounting for developers and high-net-worth individuals.

Bajaj Housing Finance IPO Details

The Bajaj Housing Finance IPO is a Book Built Issue amounting to ₹6,560.00 Crores, comprising a Fresh Issue of 50.85 lakh shares worth ₹3,560.00 Crores and an Offer for Sale (OFS) of 42.85 lakh shares, totaling ₹3,000.00 Crores. The subscription period for the IPO began on September 09, 2024, and closed on September 11, 2024. The allotment was finalized on September 12, 2024, with shares listed on BSE and NSE on September 16, 2024.

The share price band was set at ₹66 to ₹70 per equity share, with a minimum lot size of 214 shares. Retail investors needed to invest a minimum of ₹14,980, while High-Net-Worth Individuals (HNIs) had to invest in a minimum of 14 lots, which equates to 2,996 shares and an investment of ₹209,720.

IPO Management

The Book Running Lead Managers (BRLMs) for this issue were:

Kotak Mahindra Capital Company Limited

BofA Securities India Limited

Axis Capital Limited

Goldman Sachs (India) Securities Private Limited

SBI Capital Markets Limited

JM Financial Limited

IIFL Securities Limited

KFin Technologies Limited acted as the registrar for the issue.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Bajaj Housing Finance Limited IPO was estimated in the range of ₹60 to ₹65, reflecting potential listing gains of 90% to 95%. While the Grey Market does not provide a reliable price discovery mechanism, the high GMP suggests positive sentiment around the stock. However, trading in the Grey Market is informal, and thus it is advised that investors base their decisions on official market data rather than GMP alone.

Subscription Status

As of 6:00 PM on September 11, 2024, the Bajaj Housing Finance IPO was subscribed a staggering 63.61 times. This reflects the strong demand for the stock, supported by the company’s solid financial performance and market positioning.

For real-time updates, investors can check the Bajaj Housing Finance Limited IPO subscription status on the BSE website.

Allotment Status

The allotment of shares was completed on September 12, 2024. Investors can check their allotment status by visiting the KFin Technologies Limited website and following these steps:

Go to the IPO allotment status page.

Select Bajaj Housing Finance Limited IPO from the dropdown.

Enter your application number, PAN, or DP Client ID.

Submit the details to view the allotment status.

Financial Performance

Bajaj Housing Finance has shown consistent growth in recent years. The company’s revenue rose from ₹37,671.3 million in FY22 to ₹56,654.4 million in FY23, and it further climbed to ₹76,177.1 million in FY24. Similarly, EBITDA increased from ₹31,409.3 million in FY22 to ₹68,935.3 million in FY24. Profit After Tax (PAT) also saw an uptick, growing from ₹7,096.2 million in FY22 to ₹17,312.2 million in FY24.

For the IPO, the company is issuing shares at a pre-issue EPS of ₹2.6 and a post-issue EPS of ₹2.07. The pre-issue P/E ratio is 26.92x, and the post-issue P/E ratio is 33.81x, against the industry P/E ratio of 20.0x. The Return on Average Equity (ROAE) for FY24 stands at 15.2%, which suggests solid returns for investors.

Objectives of the IPO

The proceeds from the Offer for Sale (OFS) will go directly to the Promoter Selling Shareholder, after deducting relevant expenses and taxes. The company will not receive any proceeds from the OFS. The funds raised from the Fresh Issue will be used for general corporate purposes and to further enhance the company’s operational capacity.

IPO Review and Recommendation

Given the company’s steady financial performance, its position as an Upper-Layer NBFC, and strong investor interest, the Bajaj Housing Finance IPO is well-priced. The Grey Market Premium points to listing gains of up to 95%, and the stock's strong debut further reinforces this potential.

With a P/E ratio that aligns with industry standards and a solid ROAE, this IPO is an attractive proposition for both short-term and long-term investors. We recommend applying for the Bajaj Housing Finance IPO for listing gains or long-term growth.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.