Bajaj Housing Finance IPO is in the eyes of every investor because Bajaj Housing Finance Company is a part of Bajaj Finserv and the company’s housing portfolio is very good; it is the second largest housing finance company in India.
Bajaj Housing Finance Limited (BHFL) is a company that serves both individual and institutional customers. This company offers various categories of home loan products to the customers such as home loans, home improvement loans, home extension loans, and balance transfer loans.
Bajaj Housing Finance Limited (BHFL) has a very strong track record of financial performance. The company has delivered consistent growth and profitability in its loan portfolio. The business model of the ISS company is fee-based income, which the company generates from interest income and processing fees.
Bajaj Housing Finance IPO DETAILS
- Issue Date: 09-09-2024
- Closing Date: 11-09-2024
- Price Band: Rs 66 to Rs 70 Per Share
- Issue Size: Rs 6560 Cores
- Lot Size: 214 Shares
- Minimum Investment: Rs 14980 for retail investors
- Listing Date: Expected on 16-09-2024
- GMP: Currently At Rs 55
How has the company performed in recent years?
Bajaj Housing Finance Limited (BHFL) has shown impressive performance in recent years. Here are some key highlights:
- Revenue: Bajaj Housing Finance Limited (BHFL) revenue increased by 34% from financial year 2023 to financial year 2024
- Profit Growth: The profit of the company grew by 38% in the financial year 2023-24
- Net Interest Income: In Q1 FY24, the net interest income grew by 77% to Rs 594 crore from Rs 335 crore in Q1 FY22.
- Asset Under Management (AUM): The AUM grew by 42%, reaching₹62,931 crore as of September 30, 2022, compared to₹44,429 crore the previous year.
- Post-tax Profit: The company delivered a post-tax profit of Rs 316 crore in Q1 FY24, registering a growth of 96% compared to Rs 161 crore in Q1 FY22.
What are the risks associated with investing in this IPO?
Investing in the Bajaj Housing Finance Limited (BHFL) IPO comes with several risks:
1. High debt-to-equity ratio:
However, the company’s debt-to-equity ratio is 5.7, which is quite high. If there is ever a downturn in the market, its impact can be felt by managing LBS.
2. Regulatory Risks :
The company operates in a highly regulated industry and is subject to periodic inspections by the National Housing Bank. Non-compliance with regulations could adversely affect its business.
3. Economic Fluctuations :
Changes in interest rates or economic conditions could impact BHFL’s profitability. The company is also exposed to real estate market fluctuations, which may affect loan recovery and collateral value.
4. Liquidity Concerns :
BHFL may face mismatches in the maturity of its assets and liabilities, leading to potential liquidity issues.
5. Customer Defaults :
The risk of customer defaults is inherent in the housing finance sector, which could impact the company’s financial stability.
6. Dependence on the Real Estate Sector :
BHFL’s business is closely tied to the real estate sector, making it vulnerable to downturns in this market.
How to Apply for Bajaj Housing Finance IPO?
1. Through a Brokerage Account
You can apply for the IPO through your brokerage account. Ensure you have an active demat account and a trading account.
2. Using ASBA (Application Supported by Blocked Amount)
Investors can also use the ASBA facility, where the application amount is blocked in your bank account until the shares are allotted.
3. Online Application
Many brokers offer online IPO application services. Check with your broker for the procedure and ensure you submit your bid within the subscription period.
Bajaj Housing Finance IPO Review
Another company from the Bajaj group will be listed. Today the opportunity to invest money in the Rs 6,560 crore IPO of Bajaj Housing Finance was opened. It has raised Rs 1,758 crore from 104 major investors such as Morgan Stanley, Nomura, JPMorgan, and Invesco. 25.11 million shares were issued for Rs 70 each.
Now, if we talk about the grey market, its IPO is at GMP (Grey Market Premium) of Rs 56.70, which is 81% of the upper price band. However, according to market experts, investment decisions must be taken based on the company’s fundamentals and finances and not on grey market signals. The price range for its IPO is Rs 66 to Rs 70.
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