Amazeview Team
The Indian primary market is scheduled to receive Bajaj Housing Finance Limited’s initial public offering (IPO) on Monday. The biggest IPO of 2024 will remain open for bidders until September 11, 2024, which is Wednesday of the following week.Â
Bajaj Housing Finance IPO Details
The Bajaj Housing Finance IPO price band has been established by the Non-Banking Financial Company (NBFC) at ₹66 to ₹70 per equity share. The lot size of the application is 214 shares. Retail investors are required to invest a minimum of ₹14,980.
The minimum lot size investment for sNII is 14 lots (2,996 shares), which is equivalent to ₹209,720. For bNII, the minimum lot size investment is 67 lots (14,338 shares), which is equivalent to ₹1,003,660.
There will be a book-built issue of Rs 6,560.00 crores in the Bajaj Housing Finance IPO. As a whole, the issue is made up of a fresh issue of 50.86 crore shares worth Rs 3,560.00 crores and an offer to sell 42.86 crore shares worth Rs 3,000.00 crores.
The Government of Singapore, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, and JP Morgan are some of the well-known anchor investors.
Compared To Other Peers
BHFL’s robust yet diversified AUM growth (+30% CAGR), sturdy asset quality (NPAs less than 1%). Also superior technology platform enable it to remain relevant in a stiff competitive environment. Despite the fact that this is expensive compared to peers like LIC Housing Finance (1.2x), PNB Housing (1.7x), and Can Fin Homes (2.7x).
The brokerage further stated that Bajaj Housing Finance shares were made available at the upper price band of ₹70 per equity share, which is 3.2 times their June 2024 book value (post dilution and adjusting for rights share allocation).
Bajaj Housing Finance IPO Latest GMP
The company’s shares were trading at a grey market premium (GMP) of ₹56.70, which suggests a potential increase of 81% over the issue price.
Nevertheless, it is crucial to note that grey market premiums are merely a proxy for the company’s stock position in the unlisted market and are subject to rapid fluctuations.
Brokerage View
Emkay Global pointed out that Bajaj Housing Finance is positioned favorably in the housing finance market. Thanks to its strong parentage, best-in-class credit rating, and excellent management.
SBI Securities claims that the company’s relationship with the brand “Bajaj” helps it to have a significant brand equity. For the next three years, SBI Securities anticipates the home finance sector to expand in the range of 13–15%. Therefore, it added that Bajaj home Finance is well positioned to exploit the expansion in the sector.
Anand Rathi Research underlined the likely cause for Bajaj Finance’s re-rating—the forthcoming Rs 70 billion fundraise through Bajaj Housing Finance. The broker values Bajaj Housing Finance at Rs 560 billion-590 billion.
IDBI Capital citing the solid parent, Bajaj Group, the brokerage has advised a “Subscribe” rating to the IPO for the long run.
Best Brokers for IPO Investment
- Angel One
- Zerodha
- Paytm Money
- Nuvama Wealth
- 5paisa
- Upstox
- Dhan
Disclaimer: The opinions and suggestions expressed above are those of individual analysts or broking companies, not Amazeview. Before making any investment decisions, we recommend that investors consult with certified experts.
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