Bajaj Housing Finance Secures Rs 1,757 Crore from Anchor Investors
Bajaj Housing Finance has successfully allocated shares valued at Rs 1,757 crore to a diverse group of anchor investors. The company issued 251 million shares at a price of Rs 70 each to over 100 different investors. Notable participants in this allotment include the Government of Singapore, HDFC Mutual Fund, New World Fund, and Capital Group.
Upcoming IPO Subscription Details
The initial public offering (IPO) for Bajaj Housing is set to commence on Monday. This IPO aims to raise fresh capital amounting to Rs 3,000 crore, which will be utilized to strengthen its capital base. Additionally, the offering includes a secondary share sale worth Rs 3,560 crore by its promoter Bajaj Finance. The price range for the IPO is established between Rs 66 and Rs 70 per share. If priced at the upper limit of this range, Bajaj Housing’s valuation would reach approximately Rs 58,300 crore on a post-dilution basis.
Financial Metrics and Valuation Insights
At the maximum price point within this band, Bajaj Housing’s valuation reflects a price-to-book ratio of approximately 3.2 times based on post-money calculations. For the quarter ending June 2024, the company’s book value per share stood at Rs 18. During this period, it reported a net profit of Rs 483 crore against total income amounting to Rs 810 crore.
Company Overview: A Leader in Non-Deposit-Taking Financing
Bajaj Housing operates as a non-deposit-taking housing finance company (NBFC) classified as an Upper Layer NBFC. It specializes in providing various financing solutions tailored for both individuals and corporate clients through an extensive array of products such as home loans, loans against property (LAP), lease rental discounting (LRD), and developer financing options.
As of June 30th, 2024, Bajaj Housing maintained an expansive network comprising over 215 branches across 174 locations spanning 20 states in India. The company’s assets under management (AUM) reached an impressive figure of Rs 97,000 crore, while its capital adequacy ratio remains strong at 23.8%, indicating robust financial health.
Conclusion: A Promising Investment Opportunity
With its strategic initiatives aimed at enhancing capital strength through upcoming public offerings and solid financial performance metrics backing it up—Bajaj Housing Finance presents itself as an attractive investment opportunity within India’s growing housing finance sector.
Graduated from University of Denver, Residing in Dallas, Texas. Political observer and a Conservative. Follow on Twitter for more.
