Bajaj Housing Finance Limited (BHFL), a leading housing finance company in India, has announced the price band for its initial public offering (IPO) at ₹66-70 per share. The IPO, which is expected to raise ₹6,560 crore, will be open for subscription from September 9 to September 11, 2024.
Key Highlights of the IPO:
- Price Band: ₹66-70 per share
- Offer Size: 6.72 crore equity shares
- Subscription Dates: September 9-11, 2024
- Reservation: 75% for QIBs, 10% for NIIs, 15% for RIIs
Bajaj Housing Finance Company Overview
Bajaj Housing Finance is a subsidiary of Bajaj Finance, one of India’s leading financial services companies. The company provides a range of housing finance products, including home loans, loan against property, and construction finance. With a presence in over 70 locations across India, Bajaj Housing Finance has established itself as a major player in the housing finance sector.
IPO Details
The IPO consists of a fresh issue of ₹3,560 crore and an offer for sale of ₹3,000 crore by Bajaj Finance. The price band has been set at ₹66-70 per share, with a minimum lot size of 214 equity shares. The IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Reservation
The IPO has a reservation of 50% of the issue for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. The company has also reserved ₹50 crore worth of shares for its employees.
Objective
The proceeds from the fresh issue will be used to increase the company’s capital base to meet future capital requirements. The company plans to use the funds to expand its loan portfolio, enhance its technology infrastructure, and strengthen its risk management framework.
Financial Performance
Bajaj Housing Finance has reported strong financial performance in recent years. For the financial year 2022-23, the company reported a net profit of ₹1,435 crore, up 43% from the previous year. The company’s loan portfolio grew by 25% to ₹63,000 crore during the same period.
Industry Outlook
The housing finance sector in India is expected to grow significantly in the coming years, driven by government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and the Affordable Housing Program. The sector is also expected to benefit from the increasing demand for housing loans, driven by urbanization and growing income levels.
Competitive Landscape
Bajaj Housing Finance operates in a competitive market, with other major players including HDFC, ICICI Home Finance, and Indiabulls Housing Finance. However, the company has established itself as a leading player in the sector, with a strong brand and a wide distribution network.
Risk Factors
The IPO is subject to various risk factors, including regulatory risks, interest rate risks, and credit risks. Investors should carefully consider these risks before investing in the IPO.
About Bajaj Housing Finance Limited
Bajaj Housing Finance Limited is a leading housing finance company in India, offering a wide range of affordable housing finance solutions to customers across the country. The company has a strong track record of providing excellent customer service and has a large and growing customer base.
Conclusion
The Bajaj Housing Finance IPO offers investors an opportunity to invest in a leading housing finance company with a strong track record of financial performance. With a strong brand and a wide distribution network, the company is well-positioned to benefit from the growing demand for housing loans in India. However, investors should carefully consider the risk factors and the company’s financial performance before investing in the IPO.
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