Bajaj Housing Finance
Book Building issueMainboardNSE₹6,560 Cr issue
+114.29%
Listing gain over issue price
Issue size
₹6,560 Cr
1 lot at cut-off
₹14,980
Lot size
214shares
Open
09 Sep 2024
Close
11 Sep 2024
Allotment
12 Sep 2024
Listing
16 Sep 2024
Listing performance
Issue price
₹70
Listed at
₹150
Listing-day close
₹165
Latest price
₹77.45
Close on 23 Oct 2026
Listing gain
+114.29%
Return since issue
+10.64%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Sep 2024 – 11 Sep 2024
- Listing date
- 16 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 214 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹6,560 Cr
- Market cap at offer price
- ₹58,297 Cr
- Promoter holding
- 100.00% → 88.75% pre-issue → post-issue
- ISIN
- INE377Y01014
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Kotak Mahindra Capital Co.Ltd.
- Registered office
- Bajaj Auto Limited Complex, Pune Road, Akurdi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 25,11,42,856 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 214 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 214 | ₹14,980 |
| Retail (max) | 13 | 2,782 | ₹1,94,740 |
| S-HNI (min) | 14 | 2,996 | ₹2,09,720 |
| S-HNI (max) | 66 | 14,124 | ₹9,88,680 |
| B-HNI (min) | 67 | 14,338 | ₹10,03,660 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
25,11,42,856
Anchor portion
₹1,758 Cr
at ₹70 per share
Valuation and performance
Valuation at offer price
₹70 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.21 | 2.32 |
| P/E (×) | 31.67 | 30.17 |
| Price to book (×) | 3.72 | — |
| Market cap | — | ₹58,297 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 3.60%
- Debt / equity
- 5.70
- NAV per share
- ₹18.80
- Price to book
- 3.72
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Bajaj Housing Finance
Bajaj Housing Finance Limited was originally incorporated as 'Bajaj Financial Solutions Limited' on June 13, 2008, and renamed to 'Bajaj Housing Finance Limited' on November 14, 2014. The company is registered with the National Housing Bank since September 24, 2015 as a housing finance institution. It has been identified and categorized as an 'Upper Layer' NBFC by the RBI. The company offers comprehensive mortgage products including home loans, loans against property, lease rental discounting, and developer financing, primarily focusing on individual retail housing loans supported by commercial and developer loans, serving customers from homebuyers to large developers.
Company Analysis
from RHPBajaj Housing Finance Limited is a non-deposit taking Housing Finance Company offering tailored financial solutions for purchasing and renovating residential and commercial properties through home loans, loans against property, lease rental discounting, and developer financing.
Bajaj Housing Finance Limited was originally incorporated as 'Bajaj Financial Solutions Limited' on June 13, 2008, and renamed to 'Bajaj Housing Finance Limited' on November 14, 2014. The company is registered with the National Housing Bank since September 24, 2015 as a housing finance institution. It has been identified and categorized as an 'Upper Layer' NBFC by the RBI. The company offers comprehensive mortgage products including home loans, loans against property, lease rental discounting, and developer financing, primarily focusing on individual retail housing loans supported by commercial and developer loans, serving customers from homebuyers to large developers.
Housing FinanceMortgage LendingFinancial Services
Objects of the Issue
- Augmenting our capital base to meet future business requirements of our Company towards onward lending Up to [●] p.30
- Augmenting capital base to meet future business requirements towards onward lending ₹35,600.0 million (Fresh Issue) p.110
- Augmenting the capital base to meet future business requirements towards onward lending ₹35,600.0 million (Fresh Issue) p.115
- Benefits of listing and brand enhancement p.115
- Meeting Offer Expenses [●] p.115
- Not specified in this document excerpt (Part 5 of 12)
- This document (pages 391-437) contains restated financial information and management's discussion thereof; specific objects of the offer/issue of funds are not detailed in this excerpt of the DRHP. p.409
Issue Structure
- Total Issue
- Up to ₹65,600.0 million
- Fresh Issue
- Up to ₹35,600.0 million
- Offer for Sale
- Up to ₹30,000.0 million
- Price Band
- [●] (Floor Price) to [●] (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily through interest income on loans disbursed to customers across its product portfolio (home loans, loans against property, lease rental discounting, and developer financing). It also generates fee income and commission through related party transactions for servicing and sourcing activities.
Business Segments
Individual retail housing loans for purchasing and renovating residential properties
Secured loans against property collateral for various purposes
Financing solutions for real estate developers and construction projects
Financing for equipment and lease rental obligations
Individual housing loans provided to salaried and self-employed customers
Loans secured by residential or commercial property collateral
Financing of lease rentals on commercial real estate properties
Financing provided to developers for real estate projects
Loans for purchase and renovation of residential properties offered to salaried, self-employed professionals, and self-employed non-professionals
Secured loans extended against residential and commercial properties
Financial solutions for lease rental discounting arrangements
Construction and project financing solutions to real estate developers
Non-collateralised loans and other financial services
Financing for purchase, renovation, and balance transfers of residential properties tailored to salaried, professional and self-employed individuals with average ticket size of ₹4.6 million and average loan-to-value ratio of 69.3%
Cash flow-backed lending secured against residential and commercial properties, offered across 74 locations with average ticket size of ₹5.9 million and loan-to-value ratio of 53.0%
Financing commercial properties with established lease rental cash flows from Grade A commercial properties and reputable corporate tenants, available across 14 locations with average ticket size of ₹1,018.9 million
Financing for residential and commercial real estate development projects secured through project cash flows with average ticket size of ₹459.9 million, 669 active funded projects and 432 active developer relationships
Provides long-term finance for purchase, construction, repair and upgrading of residential dwelling units, including salaried home loans, near-prime and affordable home loans, and repo rate-linked home loans
Provides financing for commercial real estate and loans against property collateral
Provides financing to developers for construction and real estate projects
Distribution of financial products including personal and consumer finance products, mutual fund products, fixed deposits and other investment products, and all types of card products
Solicitation and distribution of general insurance, life insurance, and reinsurance products as an insurance agent and intermediary
Secured loans for purchase or construction of residential properties, primarily to salaried and self-employed customers
Loans provided against the security of residential or commercial properties
Discounting of future lease rental payments for commercial equipment and vehicles
Funding for construction finance to real estate developers, covering 432 active developer relationships and 669 active projects as at 30 June 2024
Unsecured and other loan products not falling under primary segments
Provides home loans to individuals and developer/builder loans for residential construction and purchase
Provides loans against property, lease rental discounting, and unsecured personal loans
Provides insurance intermediation services as a Corporate Agent (CA) following IRDAI registration
Manages portfolio of investments in debt securities and equity instruments
Individual retail housing loans to salaried and self-employed customers for purchase and renovation of residential properties. As at June 30, 2024, home loans contributed 58.7% of AUM with 87.5% salaried customers, 4.3% self-employed professionals, and 8.2% self-employed non-professionals. Average ticket size is ₹4.6 million with average LTV of 69.3%, and 75.5% of home loan AUM from customers with CIBIL score above 750.
Secured loans extended against residential and commercial properties as collateral. Focus on self-occupied residential properties to maintain lower risk profile. Lower risk customers (salaried and self-employed professionals) comprised 28.9% of LAP AUM as at June 30, 2024. Represented 10.0% of AUM as at June 30, 2024.
Financing provided against commercial properties with rental income streams. Represented 19.5% of AUM as at June 30, 2024. Particularly dependent on commercial real estate market performance and tenant rental income stability.
Financing provided to developers and builders for residential and commercial construction projects. Represented 11.2% of AUM as at June 30, 2024, generating higher yielding income.
SWOT Analysis
Strengths
- • Second largest HFC by AUM with strong growth track record(p.121)
- • Lowest GNPA and NNPA among peers in Fiscal 2024(p.121)
- • Highest credit ratings and diversified borrowing sources(p.121)
- • Omni-channel sourcing with digital initiatives(p.121)
- • Strong Bajaj brand equity and recognition(p.121)
- • Strong credit ratings from multiple agencies(p.143)
- • Solid capital adequacy position exceeding regulatory requirements(p.142)
- • Low credit costs indicating strong asset quality(p.142)
- • Healthy profitability with positive growth trajectory(p.142)
- • Strong deposit funding base with diversified borrowing mix(p.142)
- • Second largest HFC by AUM with fastest growth trajectory(p.214)
- • Largest non-deposit taking HFC in India within seven years of operations(p.214)
- • Most diversified HFC with comprehensive mortgage product suite(p.217)
- • Lowest asset quality metrics among large HFC peers(p.218)
- • Highest salaried customer mix among large HFCs(p.217)
- • Highest possible credit ratings in India(p.222)
- • Strong profitability and return metrics(p.217)
- • Support from parent company Bajaj Finance Limited(p.229)
- • Regulatory framework enables efficient NPA recovery without court intervention(p.258)
- • Structured corporate governance framework with independent board oversight(p.251)
- • Access to NHB refinance assistance for affordable housing initiatives(p.254)
- • Diversified lending portfolio across multiple product categories(p.326)
- • Strong AUM growth with significant year-on-year expansion(p.301)
- • Improved productivity per employee and per branch(p.302)
- • Low credit impairment ratios across product segments(p.304)
- • High quality home loan portfolio with strong customer credit profiles(p.305)
- • NBFC-UL (upper layer) classification by RBI indicating scale and regulatory standing(p.326)
- • Strong profitability with consistent profit growth(p.321)
- • Largest non-deposit taking HFC within 7 years of commencing mortgage operations(p.409)
- • Second largest HFC in India by AUM(p.409)
- • Lowest GNPA and NNPA ratios among large HFCs(p.410)
- • Highest credit ratings for borrowings(p.410)
- • Highest salaried customer mix in home loan portfolio(p.410)
- • Most diversified HFC offering full mortgage product suite(p.410)
- • Second highest loan disbursement among HFCs(p.410)
- • Strong profitability and capital adequacy(p.411)
- • Diversified funding sources with high credit ratings(p.442)
- • Strong capital adequacy position(p.443)
- • Significant NHB refinancing access(p.442)
Weaknesses
- • High total borrowings with dependency on timely customer repayments(p.47)
- • Exposure to covenant compliance risks and potential acceleration of debt obligations(p.48)
- • High portfolio concentration in real estate with 97.9% secured by property collateral(p.49)
- • Challenges in verifying property titles and defects in collateral(p.49)
- • Asset-liability maturity mismatch with long-term assets funded by shorter-term liabilities(p.53)
- • Hedging instruments generating losses rather than protecting against interest rate risk(p.51)
- • Significant litigation exposure with 23 criminal proceedings against the company and substantial aggregate claims(p.52)
- • Internal control weaknesses and audit observation gaps(p.61)
- • Dependence on external distribution network with non-exclusive intermediary contracts(p.55)
- • Related party borrowings at potentially unfavorable terms(p.51)
- • Concentration of ownership—100% held by single promoter(p.106)
- • Material portion of loan portfolio concentrated in home loans(p.124)
- • High leverage ratio limiting financial flexibility(p.125)
- • Elevated cost of borrowings increasing funding pressure(p.142)
- • Declining net interest margins compressing profitability(p.142)
- • Rising operational expenses relative to net income(p.142)
- • Leverage increasing with higher debt-to-equity ratio(p.142)
- • Declining return on assets indicating efficiency challenges(p.142)
- • High operating expense to net total income ratio relative to some competitors(p.234)
- • Dependency on developer financing for home loan sourcing(p.235)
- • LAP portfolio GNPA higher than home loan GNPA(p.232)
- • Limited branch network and employee base compared to peer LIC Housing Finance(p.220)
- • Significant employee attrition requiring continuous hiring(p.226)
- • Regulatory restrictions on lending concentration to single borrowers and groups(p.251)
- • Limited LTV ratios constrain loan disbursement capacity for higher-value properties(p.251)
- • Mandatory compliance with RBIA guidelines increases internal audit costs and complexity(p.255)
- • Stringent minimum capital and profitability requirements for refinance eligibility(p.254)
- • Heavy dependence on debt securities and bank borrowings for funding(p.320)
- • High leverage ratio indicating elevated financial risk(p.312)
- • Concentration of AUM in Maharashtra and Karnataka states(p.301)
- • Significant exposure to home loans which represent majority of portfolio(p.303)
- • Declining net interest margin under pressure from competitive rates(p.310)
- • Deterioration in operating expense ratio reflecting cost pressures(p.311)
- • Concentration in non-housing loan segments with higher NPAs(p.413)
- • Significant exposure to lease rental discounting dependent on commercial real estate vacancy(p.412)
- • Rising finance costs impacting margins(p.425)
- • Dependence on cost-effective funding sources(p.412)
- • High leverage with debt-to-equity ratio of 5.0(p.445)
- • Significant litigation exposure across company, promoters and directors(p.450)
- • Substantial contingent liabilities and disputed claims(p.443)
Opportunities
- • Growth in housing finance sector with expected CAGR of 13-15%(p.76)
- • Access to NHB refinance schemes with favorable terms and long tenors(p.54)
- • Expansion of lease rental discounting and developer financing segments(p.63)
- • Growth in high-quality salaried customer segment with low NPAs(p.56)
- • Strong credit ratings enabling competitive debt issuance(p.47)
- • Capital augmentation to support continued AUM growth(p.116)
- • Expansion of product portfolio beyond traditional home loans(p.124)
- • Increased developer finance business with growing pipeline(p.124)
- • Maintaining higher capital adequacy ratios to support competitive positioning(p.116)
- • Massive housing shortage creating large addressable market(p.182)
- • Low mortgage penetration relative to peer economies offering growth runway(p.183)
- • Government support through multiple housing schemes and incentives(p.159)
- • Rising urbanization and nuclear family formation driving demand(p.160)
- • Favorable demographic profile with young population(p.185)
- • High household savings and improving disposable incomes supporting affordability(p.164)
- • Growing financial inclusion and digital penetration expanding customer base(p.162)
- • Expected growth in overall housing finance market at 13-15% CAGR through Fiscal 2027(p.190)
- • Massive housing shortage and emerging mortgage demand in India(p.224)
- • Rising urbanization increasing residential real estate demand(p.203)
- • Government initiatives supporting affordable housing(p.203)
- • Expansion into near-prime and affordable housing segments(p.235)
- • Strong growth in LAP segment and loan against property market(p.205)
- • Rising commercial real estate demand and lease rental discounting growth(p.212)
- • Digital penetration opportunities in tier II and III cities(p.205)
- • NHB refinance opportunities for cost-effective longer tenor funding(p.203)
- • Co-lending framework with banks expands market reach and reduces capital constraints(p.253)
- • Digital lending infrastructure enables cost-efficient customer acquisition and servicing(p.255)
- • Priority Sector Lending framework creates dedicated channel for affordable housing finance(p.253)
- • Early warning signals framework enables proactive risk management and NPA prevention(p.256)
- • Expansion of Developer Finance segment with strong growth trajectory(p.303)
- • Growth in Lease Rental Discounting business with expanding customer base(p.303)
- • Geographical expansion to new markets and untapped regions(p.301)
- • Growing direct sourcing channel reducing dependency on intermediaries(p.305)
- • Expansion of Loan Against Property business with increasing average ticket size(p.306)
- • Growth in self-employed non-professional segment in home loans(p.305)
- • Large housing shortage creating significant demand for housing loans(p.409)
- • Significant untapped housing loan market potential(p.409)
- • Expansion into insurance distribution generating additional fee income(p.411)
- • Digital innovation improving operational efficiency(p.411)
- • Growing average loan ticket size with prime housing focus(p.409)
- • Continued capital mobilization through multiple debt instruments(p.440)
- • Direct assignment of loan receivables as funding source(p.440)
Threats
- • Inability to fully recover collateral value or sums due from defaulted loans could adversely affect business(p.42)
- • Difficulty controlling GNPAs/Stage 3 Assets and maintaining adequate provisioning coverage(p.32)
- • Non-compliance with RBI requirements could materially adversely affect the business(p.32)
- • Geographic concentration of AUM in four states and Delhi exposes to regional risks(p.32)
- • Real estate portfolio exposure creates vulnerability to sector downturns and title defects(p.32)
- • Macroeconomic volatility including interest rate fluctuations could impact profitability(p.32)
- • Related party borrowings may have been on unfavorable terms(p.32)
- • Legal proceedings could adversely affect business if outcomes are unfavorable(p.32)
- • Significant downturn risk in real estate sector affecting collateral values and loan repayment(p.48)
- • Interest rate volatility impacting Net Interest Margin and profitability(p.50)
- • Competitive pricing pressure from banks and other financial institutions(p.76)
- • Customer balance transfer risk due to variable rate exposure and no prepayment penalties(p.64)
- • Commercial real estate vacancy risk in lease rental discounting portfolio(p.63)
- • Regulatory compliance requirements and risk of penalties from NHB and RBI(p.57)
- • Macroeconomic downturn and general economic slowdown in India(p.76)
- • Concentration risk with top 10 and top 20 customers representing 6.2% and 8.8% of loans(p.58)
- • Developer financing portfolio exposure to construction delays and project failures(p.64)
- • Increased cost of borrowings due to rising interest rates(p.47)
- • Regulatory increase in risk weights on consumer credit reducing CRAR(p.116)
- • Competitive intensity and pressure on interest spreads(p.125)
- • Funding cost pressures from rising interest rate environment(p.125)
- • Funding requirements dependent on capital market access and credit ratings(p.116)
- • Regulatory and policy changes impacting demand and operations(p.196)
- • Intense competition from banks and other NBFCs in housing finance(p.199)
- • Rising interest rates pressuring borrower affordability and demand(p.157)
- • Asset-liability mismatch creating funding challenges(p.196)
- • Thin spreads in housing finance due to intense competition(p.196)
- • Project delays and construction risks impacting borrower defaults(p.196)
- • Economic slowdown and moderation in GDP growth affecting credit demand(p.156)
- • Highly competitive housing finance industry from banks and other HFCs(p.245)
- • Banks' risk-averse focus shifting to high-ticket customers(p.202)
- • Private sector banks capturing market share in LAP segment(p.208)
- • Economic downturns and interest rate volatility affecting repayment capacity(p.211)
- • Real estate sector stress from construction delays and regulatory challenges(p.213)
- • RBI regulatory provisions on standard asset provisioning impacting profitability(p.213)
- • Asset quality deterioration risk in commercial real estate and wholesale lending(p.213)
- • Monsoon and natural calamities impacting borrower repayment capacity(p.204)
- • Regulatory intervention risk via dividend restrictions and capital mandates(p.252)
- • Mandatory compliance with evolving IT security and cybersecurity regulations(p.256)
- • DPDP Act 2023 increases operational complexity for data collection and customer consent management(p.257)
- • Recovery agent conduct restrictions limit debt collection effectiveness and may increase NPAs(p.253)
- • IBC 2016 framework enables creditors to trigger insolvency proceedings at early financial distress signs(p.258)
- • Interest rate volatility and pressure on yield on loan assets(p.312)
- • Rising funding costs impacting finance cost percentages(p.309)
- • Regulatory changes and increased compliance requirements(p.326)
- • Economic uncertainty affecting borrower repayment capacity(p.327)
- • Competitive pressure from banks and other HFCs in the housing finance market(p.301)
- • Dependence on refinance facility from National Housing Bank(p.351)
- • Real estate market deterioration affecting collateral values(p.412)
- • Regulatory framework changes affecting business model(p.412)
- • Macroeconomic slowdown impacting repayment capacity(p.411)
- • Increased non-performing assets from macroeconomic deterioration(p.414)
- • Project delays affecting security enforcement on developer finance(p.412)
- • Significant covenant compliance risks under debt arrangements(p.440)
- • Dependence on regulatory approvals and NHB refinancing conditions(p.474)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bajaj Finance Limited | Promoter/Promoter Selling Shareholder | 100% | [●] |
| Bajaj Finserv Limited | Promoter | — | [●] |
| Bajaj Finance Limited | Promoter/Promoter Selling Shareholder | — | — |
| Bajaj Finance Limited | Promoter | 100% | — |
| Sanjivnayan Bajaj | Promoter Group | Negligible | — |
| Bajaj Finance Limited | Promoter / Parent Company (100% ownership) | — | — |
| Bajaj Finance Limited | Promoter | 100% | — |
| Bajaj Finserv Limited | Promoter | — | — |
| Bajaj Finance Limited | Promoter/Parent Company (100% holding) | — | — |
| Bajaj Finance Limited | Holding Company / Promoter | 100% | 100% |
| Bajaj Finance Limited | Holding Company/Promoter | — | — |
| Bajaj Finance Limited | Promoter Selling Shareholder | — | — |
| Bajaj Finance Limited | Promoter Selling Shareholder | — | — |
Leadership
Sanjivnayan Bajaj · Chairman
Atul Jain · Managing Director
Gaurav Kalani · CFO
Atul Patni · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Bajaj Housing Finance IPO FAQs
What is the lot size of Bajaj Housing Finance IPO?
The minimum lot size of Bajaj Housing Finance IPO is 214 shares. One lot costs ₹14,980 at the cut-off price.
When does Bajaj Housing Finance IPO open and close?
Bajaj Housing Finance IPO opened for subscription on 09 Sep 2024 and closed on 11 Sep 2024.
What is the listing date of Bajaj Housing Finance IPO?
Bajaj Housing Finance IPO listed on 16 Sep 2024.