The Bajaj Housing Finance IPO has been creating quite a stir in the market. As one of the most anticipated initial public offerings, it’s generating significant interest among investors. But is it worth the hype? Let’s dive into the details of this IPO and analyze whether it deserves a spot in your investment portfolio.
Bajaj Housing Finance IPO: Key Details and Dates
The Bajaj Housing Finance IPO is set to open from September 9 to September 11, 2024. Here are the essential details you need to know:
- Price Band: ₹66 to ₹70 per share
- Lot Size: 214 shares
- Issue Size: ₹5,550 crore (₹3,550 crore fresh issue + ₹2,000 crore OFS)
- Face Value: ₹10 per share
- Retail Portion: 35% of the issue
- Shareholder Reservation: 10% of the issue
- Expected Listing Date: September 16, 2024
One significant change in this IPO is the limit on applications in the shareholder category. Investors can now apply for a maximum of 13 lots (worth ₹2 lakh) in this category, which may increase allotment chances for retail investors.
Analyzing Bajaj Housing Finance’s Market Position
Bajaj Housing Finance, incorporated in 2008, has established itself as a prominent player in the housing finance sector. As a part of the reputable Bajaj Group, the company benefits from strong brand recognition and expertise in the financial sector.
Key highlights of Bajaj Housing Finance’s market position include:
- Second-largest housing finance company in India by revenue
- Total Assets Under Management (AUM) of approximately ₹97,000 crore
- Over 3 lakh active clients, with 81% being home loan customers
- Presence in 20 states and 3 union territories through 215 branches
Bajaj Housing Finance Financials: A Closer Look
The company’s financial performance has been impressive over the past few years. Let’s examine some key metrics:
- Assets: Grown from ₹48,000 crore to ₹80,000 crore (2022-2024)
- Revenue: Increased from ₹3,700 crore to ₹7,600 crore (2022-2024)
- Profit: Rose from ₹709 crore to ₹1,315 crore (2022-2024)
- Profit Margin: Approximately 22%
- Net Worth: More than doubled over the past three years
- Reserves: ₹4,252 crore
These numbers indicate strong growth and profitability, which are positive signs for potential investors.
Bajaj Housing Finance IPO GMP and Subscription Status
The Grey Market Premium (GMP) for Bajaj Housing Finance IPO is currently around ₹71, suggesting a healthy demand in the unofficial market. This translates to a potential listing gain of about ₹700 per lot at the current GMP.
However, it’s important to note that the anchor list and subscription details are yet to be released. These factors can significantly influence the IPO’s performance and investor sentiment.
Pros and Cons of Investing in Bajaj Housing Finance IPO
Pros:
- Strong market position as the second-largest housing finance company
- Impressive financial growth and profitability
- Low Non-Performing Assets (NPAs) – Gross NPA of 0.28% and Net NPA of 0.11%
- Backing of the reputable Bajaj Group
- Growing housing finance sector with long-term potential
Cons:
- High valuation compared to peers (P/E ratio of 26.92 vs. competitors’ lower ratios)
- Highly competitive sector with many established players
- Potential impact of economic fluctuations on the housing finance industry
How to Apply for Bajaj Housing Finance IPO
For those interested in applying, here’s a strategic approach:
- If you’re a shareholder, apply for the maximum of 13 lots in the shareholder category.
- Additionally, apply for one lot in the retail category.
- This dual application strategy may increase your chances of allotment.
Remember, you can apply in both categories (shareholder and retail) using the same demat account, even on different days during the IPO period.
Should You Invest in Bajaj Housing Finance IPO?
The decision to invest in the Bajaj Housing Finance IPO depends on various factors, including your investment goals, risk appetite, and market outlook. Here are some points to consider:
- Strong financials and market position make it an attractive option for long-term investors.
- The high GMP suggests potential for listing gains, appealing to short-term traders.
- However, the high valuation compared to peers is a point of concern.
- The housing finance sector’s long-term growth potential adds to the company’s appeal.
Ultimately, while the IPO shows promise, it’s crucial to conduct your own research and consider your financial goals before making an investment decision. As always in the stock market, there are no guarantees, and it’s important to invest wisely and within your risk tolerance.
FAQ (Frequently Asked Questions)
What is the price band for Bajaj Housing Finance IPO?
The price band for Bajaj Housing Finance IPO is set at ₹66 to ₹70 per share.
When will Bajaj Housing Finance IPO open for subscription?
The Bajaj Housing Finance IPO will be open for subscription from September 9 to September 11, 2024.
What is the lot size for Bajaj Housing Finance IPO?
The lot size for Bajaj Housing Finance IPO is 214 shares.
Yes, this IPO has a 10% reservation for existing Bajaj Group shareholders.
Investors can apply for a maximum of 13 lots (worth ₹2 lakh) in the shareholder category.
When is the expected listing date for Bajaj Housing Finance IPO?
The expected listing date for Bajaj Housing Finance IPO is September 16, 2024.
For Best Credit Cards:- Click Here
3 thoughts on “Bajaj Housing Finance IPO: Key Details & Analysis | Should You Invest?”