Pune based Housing Finance Company Bajaj Housing Finance files DRHP with SEBI for the proposed IPO; Key Details here

Bajaj Housing Finance is into Financial Services Housing Finance and is looking raise funds through Fresh Issue and Offer For Sale

Bajaj Housing FinanceIPO: Fresh Issue of Equity shares aggregating up to Rs.4000 crores. Offer for Sale of Equity shares aggregating up to Rs.3000 crores IPO

Bajaj Housing Finance IPO: Bajaj Housing Finance Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Promoters of Bajaj Housing Finance are Bajaj Finance Limited and Bajaj Finserv Limited and holds 100% stake in the company.

Key Details:

• Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 4,000 crores and an Offer for Sale aggregating up to Rs 3,000 crores..
• Kotak Mahindra Capital, BofASecurities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, IIFL Securities have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 4,000 Crs andby Promoter Selling Shareholder include Bajaj Finance Limited who would offload shares aggregating upto Rs 3,000 crores...

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Objects of the issue:
1) Augmenting capital base to meet future business requirements of the company towards onward lending.

About Company:
Incorporated in 2008 and promoted by Bajaj Finance Limited and Bajaj Finserv Limited. Company is a non-deposit taking Housing Finance Company registered with the National Housing Bank (NH) since September 24, 2015, offering tailored financial solutions for purchasing and renovating residential and commercial properties. Company's primarily focus is on individual retail housing loans, diverse range of commercial and developer loans, serving customers from homebuyers to large developers.

Key Indicators
• Share of Home Loans/LAP/LRD/Developer Finance/Others in FY24 at 57.8%/10.5%/19.1%/10.5%/1.9%
• AUM grew at a CAGR of 31% to Rs 91,370.4 crores during FY22-24
• Segment wise AUM for Home Loans/LAP/LRD/Developer Finance for FY24 at Rs 52,819.6 / Rs 9,567.9 / Rs 17,636.8 / Rs 9,599.3 crores
• Gross NPA for FY24 / FY23 / FY22 at 0.3%/0.2%/0.3%
• Net NPA for FY24 / FY23 / FY22 at 0.1%/0.1%/0.1%
• Credit Cost for FY24 / FY23 / FY22 at 0.1%/0.2%/0.5%
• Borrowing Mix at 51%/35%/10%/4%/0% for Bank Borrowings / NCD / NHB / CP / Others

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About Industry:
India has very low penetration in terms of housing finance as compared to other economies which shows a high potential for expansion of Indian housing finance companies. The Indian housing finance market clocked a healthy CAGR of 12.6% (growth in credit outstanding) during FY19-23, on account of rise in disposable incomes, healthy demand, and greater number of players entering the segment. Going forward, CRISIL MI&A expects overall housing segment to grow at a CAGR of 13-15% from FY23-27.

Source: SEBI, BSE, NSE, DRHP, Bajaj Housing Finance, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.