Bajaj Housing Finance IPO - Issue Details, Financials, Investment Rationale, Risks And Concerns: Motilal Oswal

Motilal Oswal Report

Bajaj Housing Finance Ltd, launched its initial public offering today and will conclude on Sept. 11. A reputable non-deposit-taking housing finance company has fixed the price band in the range of Rs 66 to 70 per share. The minimum order lot for bidding is 214 shares.

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.

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Bajaj Housing Finance benefits from distinguished heritage of the “Bajaj” brand, which enjoys widespread recognition as a reliable retail brand. It has strong risk management framework which helps it to maintain stable asset quality.

The company is confident of maintaining stable NIM through borrowing cost optimization and has guided for leverage ratio of ~6x-8x.

The IPO is fairly priced at three times FY25 price/book value (on diluted basis). Given all the positives, recommend Subscribe to the issue.

Click on the attachment to read the full IPO report:

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