Bajaj Housing Finance IPO Analysis
Main Points
Anticipation surrounding the Bajaj Housing Finance IPO.
Potential profits for investors and application guidelines.
Important details regarding the IPO process and company background.
Company Background
Incorporated in 2008, registered under National Housing Finance since 2015.
Focuses on providing housing loans.
Profit Expectations
Potential profit of ₹8,000.
Expectations for HNI category up to ₹12,00,000.
Application Guidelines
Generally, only one application per PAN card is allowed, but two applications can be filed for the Bajaj Housing Finance IPO if you are a shareholder.
Shareholders must have shares in their demat account as of August 30 to apply under the shareholder quota.
IPO Timeline
Open from September 9 to 11.
Allotment date: September 12.
Shares refund or allocation: September 13.
Tentative listing date: September 16.
Lot Details
Retail investors: 214 shares per lot at ₹14,980.
HNI small category – 14 lot 2996 shares = ₹209720
HNI small category Minimum application = 13971
HNI big category – 67 lot 14338 shares = ₹1003660
HNI big category: Minimum application 27942
Shareholder quota: Maximum application of 2,792 shares.
QIB shares offered = 50%
Retail shares offered = 35%
HNI shares offered = 15%
IPO Size
Total size: ₹6,560 crores.
Fresh issue: ₹3,560 crores; Offer for sale: ₹3,000 crores.
Financial Performance
Total assets increased from ₹48,527.08 crores to ₹88,538.83 crores.
Revenue growth from ₹3,767.13 crores to ₹7,617.71 crores over two years.
Profit after tax increased from ₹709.62 crores in 2022 & ₹1,731 crores in 2024.
Total borrowing – ₹73,347.06 crores
RoNW – 3.6%
Price to book value [ P/BV ] 3.72
EPS [ RS ] 2.32
P/E retio – 30.2
Risk Factors
Gross NPA ratio currently at 0.27; a significant increase could pose risks.
Majority of loans are given to salaried individuals (87.5%).
Economic downturns could affect repayment capabilities.
Peer Comparison
LIC Housing Finance P/E ratio: 7.3.
PNB Housing Finance P/E ratio: 12.4.
Can Fin Homes P/E ratio: ~13.
Other competitors have higher P/E ratios indicating a potential premium valuation.
Final
The upcoming Bajaj Housing Finance IPO presents a significant opportunity for investors, especially given the expected profitability and detailed application guidelines. However, potential investors should remain aware of the risks associated with economic conditions and company performance metrics. Overall, there is a strong sense of excitement within the investment community regarding this IPO.
