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IDBI Capital Report
Bajaj Housing Finance will launch its initial public offering for subscription on Sept. 09 and will conclude on Sept. 11. The company has fixed the price band in the range of Rs 66 to 70 per share.
The Rs 6,560 crore IPO comprises of a fresh issue amounting to Rs 3,560 crore and an offer-for-sale aggregating to Rs 3,000 crore from its promoter company Bajaj Finance. The equity shares carry a face value of Rs 10 each.
Objective
To meet future capital requirements towards onward lending.
Summary
Bajaj Housing Finance primarily focuses on providing mortgage loans to upper-end individual homebuyers/prime homebuyers as well as large-scale developers in India.
Backed by the strong parent, Bajaj Group, the HFC has an extensive distribution network of 215 branches as on June 30, 2024 across 174 locations in 20 states.
The company is the largest non-deposit taking HFC (in terms of AUM) in India within seven years of commencing mortgage operations. It also has the highest salaried customer mix in home loan portfolio amongst large HFCs, and is focused on prime housing with higher average ticket size.
The company has the lowest GNPA and NNPA ratios among its large HFC peers in the industry.
At upper price band, IPO is priced at price/book value of 3.2 times based on June-24 including capital raise (versus 1.2-2.7x for peers) with an ROA of 2.4%. We recommend Subscribe for long term.
Click on the attachment to read the full IPO report:
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