Top Reasons to Subscribe Bajaj Housing Finance Limited IPO

Top Reasons to Subscribe Bajaj Housing Finance Limited IPO

About Bajaj Housing Finance Ltd

Bajaj Housing Finance, founded in 2008, is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015. The company began offering mortgage loans in the financial year 2018.

As part of the Bajaj Group, a diverse conglomerate with interests in various sectors, Bajaj Housing Finance provides tailored financial solutions for individuals and businesses seeking to purchase or renovate homes and commercial properties. Its wide range of mortgage products includes home loans, loans against property (LAP), rent concessions, and developer finance.

By March 31, 2024, the company served 308,693 active customers, with 81.7% being home loan customers. Bajaj Housing Finance operates through 215 branches spread across 174 locations in 20 states and three union territories, supported by six centralized retail loan review centers and seven centralized loan processing centers.

Key Factors

  • Part of Bajaj Group:?

Being part of the well-established Bajaj Group provides a solid financial backing and brand recognition, boosting customer trust and market credibility.

  • Diverse Mortgage Solutions:?

Bajaj Housing Finance offers a comprehensive range of mortgage products including home loans, loans against property, rent concessions, and developer finance, catering to a wide array of customer needs.

  • Expansive Customer Base:?

As of March 31, 2024, the company had over 308,000 active customers, with a majority being home loan clients, reflecting its strong market presence and customer trust.

  • Widespread Network:?

With 215 branches across 174 locations in 20 states and three union territories, the company has a robust geographic reach, enhancing accessibility for customers.

  • Efficient Operations:?

The company is supported by six centralized retail loan review centers and seven centralized loan processing centers, ensuring streamlined operations and faster loan processing.

  • Focused Growth in Housing Finance:?

Registered with the NHB since 2015, the company has steadily grown in the housing finance sector, specializing in mortgage lending since 2018, demonstrating a focused approach and expertise.

Key Details

IPO Date: 09 September 2024 to 11 September 2024

Face Value: ?10 per share

Price Band: ?66 to ?70 per share

Lot Size: 214 Shares?

Total Issue Size: ?6,560 Cr


Objectives Of The IPO

  • Augment capital base to meet future business requirements of the company towards onward lending.

Conclusion

Bajaj Housing Finance Ltd, part of the prestigious Bajaj Group, is a growing non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank since 2015. Founded in 2008, the company has steadily expanded its mortgage offerings since 2018, providing a variety of tailored financial solutions including home loans, loans against property (LAP), rent concessions, and developer finance. Its widespread network of 215 branches across 20 states and three union territories, supported by six centralized retail loan review centers and seven loan processing centers, ensures streamlined operations and wide geographic reach.

The upcoming IPO, scheduled from September 9 to September 11, 2024, aims to raise ?6,560 crore, comprising a fresh issue of shares worth ?3,560 crore and an offer for sale worth ?3,000 crore. The primary objective of the IPO is to augment the company's capital base for future business expansion, particularly for onward lending.

In summary, Bajaj Housing Finance Ltd presents a compelling investment opportunity, backed by its strong financials, steady growth, and strategic objectives aligned with expanding its operations in India’s housing finance sector.

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