Bajaj Housing Finance Limited (BHFL), an esteemed subsidiary of Bajaj Finance Limited, is all set to launch its Initial Public Offering (IPO) with a massive ₹6,560 Crores offering. Classified as an ‘Upper-Layer NBFC’ by the Reserve Bank of India (RBI), BHFL stands out in the Indian financial landscape due to its extensive reach and robust financial performance.

IPO Structure: The BHFL IPO comprises a Fresh Issue of 50.85 Lakh Shares valued at ₹3,560 Crores and an Offer for Sale of 42.85 Lakh Shares totaling ₹3,000 Crores. The subscription period for this significant offering begins on September 09, 2024, and concludes on September 11, 2024. Allotment is scheduled for September 12, 2024, with the shares expected to list on the BSE and NSE around September 16, 2024.

Pricing and Investment Details: The share price band for the IPO is set between ₹66 to ₹70 per equity share. Retail investors need to invest a minimum of ₹14,980, which corresponds to a minimum lot size of 214 shares. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots (totaling 2,996 shares), amounting to ₹209,720.

Grey Market Premium: The Grey Market Premium (GMP) for Bajaj Housing Finance Limited IPO is anticipated to range between ₹50 to ₹55. However, it's crucial to note that GMP is not a definitive indicator of final listing price and is subject to market demand and supply dynamics. This premium is provided for informational purposes only.

Live Subscription Status: As of 12:02 PM on September 10, 2024, the IPO has been subscribed 3.52 times on its second day of the subscription period. For the latest subscription status, visit the BSE website.

Allotment Information: The IPO allotment is expected to be finalized on September 12, 2024, and investors can check their allotment status on the Registrar's website. To verify your allotment status, enter your application number, PAN, or DP Client ID on the designated page.

Objectives of the IPO: The Offer for Sale proceeds will benefit the promoter selling shareholder, while the company will not receive any funds from this segment. The proceeds from the Offer for Sale will not contribute to the Net Proceeds.

Financial Performance: Bajaj Housing Finance has shown impressive financial growth. Revenue surged from ₹37,671.3 Million in FY22 to ₹76,177.1 Million in FY24. EBITDA followed a similar upward trajectory, reaching ₹68,935.3 Million in FY24. PAT also saw significant growth, climbing to ₹17,312.2 Million in FY24.

Valuation Metrics: The IPO's pre-issue EPS is ₹2.6, while the post-issue EPS is ₹2.07. The pre-issue P/E ratio stands at 26.92x, and the post-issue P/E ratio is 33.81x against an industry average of 20.0x. The company’s ROAE for FY24 is 15.2%, suggesting a fair valuation.

IPO Review: Given Bajaj Housing Finance’s strong financial performance and the valuation metrics, the IPO appears attractively priced. The Grey Market Premium suggests potential listing gains of 80% to 85%, making this IPO a promising option for both short-term gains and long-term investment.

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