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Initial public offer of up to [] equity shares of face value of Rs. 10 each (Equity Shares) of Bajaj Housing Finance Limited (Company) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (Offer Price) aggregating up to Rs. 7000.00 crores (the Offer) comprising a fresh issue of up to [] equity shares of face value of Rs. 10 each aggregating up to Rs. 4000.00 crores (Fresh Issue) and an offer for sale (the Offer for Sale) of up to [] equity shares of face value of Rs. 10 each aggregating up to Rs. 3000.00 crores by Bajaj Finance Limited (Promoter Selling Shareholder) (Offered Shares). The offer shall constitute []% of the post-offer paid-up equity share capital of the company. The offer includes a reservation of up to [] equity shares of face value of Rs. 10 each, aggregating up to Rs. [] crores (constituting up to []% of the post-offer paid-up equity share capital) for subscription by eligible employees (Employee Reservation Portion) and a reservation of up to [] equity shares of face value of Rs. 10 each, aggregating up to Rs. [] crores (constituting up to []% of the post-offer paid-up equity share capital) for subscription by eligible shareholders (Shareholders Reservation Portion). The offer less the employee reservation portion and the shareholders reservation portion is hereinafter referred to as the Net Offer. The offer and the net offer shall constitute []% and []% of the post-offer paid-up equity share capital of the company, respectively. The company, in consultation with the brlms, may consider an issue of specified securities, as may be permitted under applicable law, at its discretion, the roc (pre-ipo placement). The pre-ipo placement, if undertaken, will be at a price to be decided by the company, in consultation with the brlms. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended. The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue. Prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. Further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (if undertaken) shall be appropriately made in the relevant sections of the red herring prospectus and the prospectus. The face value of the equity shares is Rs. 10 each. The offer price is [*] times the face value of the equity shares. The price band and the minimum bid lot shall be decided by the company.
Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) engaged in mortgage lending since Fiscal 2018.
The company offers financial solutions tailored to individuals and corporate entities for the purchase and renovation of homes and commercial spaces. Their product suite comprises home loans, loans against property, lease rental discounting and developer financing.
With that, let's take a look at the competitive strength and risk factors for Bajaj Housing Finance Limited:
Distinguished heritage of the “Bajaj” brand
Second largest HFC in India (in terms of AUM) with a track record of strong growth driven by a diversified portfolio
Well-defined credit evaluation and risk management practices resulting in lowest GNPA and NNPA among peers in FY24
Any inability to comply with financial and other covenants under their debt financing arrangements could adversely affect the business.
A majority of their home loan portfolio comprises loans to salaried and self-employed customers, who may be adversely affected by factors such as business failure, insolvency, lack of liquidity, loss of employment or personal emergencies. These factors could lead to increased customer defaults, leading to an increase in the levels of non-performing assets and a possible fall in the rate of loan portfolio expansion.
The company may be impacted by volatility in interest rates, which could cause their net interest income, net interest margins and the value of their fixed income portfolio to decline and adversely affect the business.
Continuous leverage of technology and analytics to enhance productivity, reduce expenses, improve customer experience and manage risks.
Diversifying and strengthening market presence with strategic customer focus and comprehensive risk management.
Continuous diversification of their borrowing profile to optimise borrowing costs.
Here are the key financials for Bajaj Housing Finance Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
Here are the steps to apply for Bajaj Housing Finance Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
The Bajaj Housing Finance IPO has an issue size of Rs. __ crores. The IPO opens for subscription on Day/Month/Year and closes on Day/Month/Year.
KFin Technologies Limited is the registrar for this IPO.