Bajaj Housing Finance more than doubles on debut

Shares of Bajaj Housing Finance were currently trading at Rs 154.81 at 10:06 IST on the BSE, representing a premium of 121.16% as compared with the issue price of Rs 70.

The scrip was listed at Rs 150, exhibiting a premium of 114.29% to the issue price.

So far, the stock has hit a high of 160.92 and a low of 147. On the BSE, over 269.25 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Bajaj Housing Finance was subscribed 63.61 times. The issue opened for bidding on 9 September 2024 and it closed on 11 September 2024. The price band of the IPO was fixed between Rs 66 to 70 per share.

The initial public offer (IPO) consisted of fresh issue to raise Rs 3,560 crore through issuance of 53.94 crore equity shares at the lower band of Rs 66 per share (face value Rs 10 per share) and 50.86 crore equity shares at the upper band of Rs 70 per share.

The issue included an offer for sale (OFS) of Rs 3,000 crore through issuance of 42.86-45.45 crore equity shares from the promoter, Bajaj Finance.

The offer comprised of shareholders reservation of Rs 500 crore for shareholders of Bajaj Finserv and Bajaj Finance and employee reservation of Rs 200 crore.

The net proceeds from the fresh issue will be used for augmenting the capital base to meet future capital requirements. The issue will bring the benefits of listing the equity shares on the stock exchanges, including enhancing brand image among existing and potential customers and creation of a public market for the equity shares in India.

Ahead of the IPO, Bajaj Housing Finance on Friday, 6 September 2024, raised Rs 1,757.99 crore from anchor investors. The board allotted 25.11 crore shares at Rs 70 each to 104 anchor investors.

Bajaj Housing Finance (BHFL) is Indias largest non-deposit taking housing finance company (HFC) registered with the National Housing Bank (NHB) since 24 September 2015. The company is a part of the Bajaj Group, a diversified business group, in existence for a century. It has undertaken mortgage lending since FY2018 and is categorized as an Upper Layer NBFC (NBFC-UL) by the Reserve Bank of India (RBI) since September 2022.

BHFL has emerged as the second largest HFC within seven years of commencing mortgage operations. The eighth largest NBFC-ULs by AUMs end March 2024, is the second most profit making HFC in India, recording the second highest loan disbursement by HFCs in India in FY2024 and Q1FY2025. It has the second highest AUM per branch and AUM per employee among large HFCs.

The firm reported a consolidated net profit of Rs 482.61 crore and income from operations of Rs 2,063.54 crore for the three months ended on 30 June 2024.

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