Bajaj Housing Finance raises Rs 1,757 crore from anchor investors

Bajaj Housing Finance on Friday allotted shares worth Rs 1,757 crore to anchor investors. It allotted 251 million shares at Rs 70 apiece to over 100 investors. Some of the investors that got an allotment included the Government of Singapore, HDFC MF, New World Fund, and Capital Group.

Bajaj Housing’s IPO opens for subscription on Monday. The IPO comprises a Rs 3,000 crore fresh fund raise, which will be used to augment its capital base. The issue also comprises a Rs 3,560-crore secondary share sale by promoter Bajaj Finance. The price band for the IPO is Rs 66-70 per share. At the top end, Bajaj Housing will be valued at Rs 58,300 crore on a post-diluted basis.

At the upper end of this price band, Bajaj Housing is valued at a price-to-book ratio of 3.2 times on a post-money basis. For the quarter ended June 2024, the company’s book value per share was Rs 18. It had clocked a net profit of Rs 483 crore on total income of Rs 810 crore.

Bajaj Housing is a non-deposit-taking housing finance company (NBFC). It is categorized as an Upper Layer NBFC engaged in providing financing solutions to individuals and corporate entities through its suite of products, including home loans, loans against property, lease rental discounting, and developer finance. As on June 30, 2024, BHFL had a network of 215 branches across 174 locations in 20 states. It had an AUM of Rs 97,000 crore, and its capital adequacy ratio is robust at 23.8 per cent.