Bajaj Housing Finance IPO price fixed at Rs66 to 77, opens on Sept 11

Investors can bid in lots of 214 equity shares

MUMBAI: The Bajaj Housing Finance IPO, opening for subscription on Monday, September 9, has set its price band at Rs66 to Rs70 per share, with a face value of Rs10 each.

The subscription period will close on Wednesday, September 11. Investors can bid in lots of 214 equity shares, with multiples thereof.

Over 50 per cent of the total issue size is reserved for Qualified Institutional Buyers (QIBs), at least 15 per cent for Non-Institutional Investors (NIIs), and a minimum of 35% for retail investors.

“Initially, Bajaj Housing Finance indicated that there was no upper limit for bids in the shareholder quota, allowing bids up to Rs500 crore. However, the company has now filed an addendum capping the maximum bid in the shareholder quota at Rs2 lakh,” said Avinash Gorakshakar, Head of Research at Profitmart Securities.

He added that applicants who bid above Rs2 lakh would not be eligible to apply in the retail or HNI categories.

Basis of share allotment

The basis of share allotment is expected to be finalized on Thursday, September 12, with refunds initiated on Friday, September 13. Shares are expected to be credited to the demat accounts of successful bidders on the same day. Bajaj Housing Finance is scheduled to list its shares on the BSE and NSE on Monday, September 16.

According to the DRHP, the company’s listed peers include PNB Housing Finance (P/E of 12.4), Can Fin Homes (P/E of 12.9), Aadhar Housing Finance (P/E of 18.7), Aavas Financiers (P/E of 3.3), Aptus Value Housing Finance (P/E of 24.6), and Home First Finance (P/E of 24.3). LIC Housing Finance has a P/E of 7.3.

Offering mortgage loans

Bajaj Housing Finance, a non-deposit-taking housing finance company, has been offering mortgage loans since FY2018. It is a 100 per cent subsidiary of Bajaj Finance, which is promoted by Bajaj Finserv Ltd. Bajaj Finserv holds a 51.34 per cent stake in Bajaj Finance.

The IPO includes an Offer for Sale (OFS) by Bajaj Finance, totaling Rs3,000 crore, along with a fresh issue of equity shares amounting to Rs3,560 crore. The share sale aims to comply with the Reserve Bank of India’s mandate requiring upper-layer Non-Banking Financial Companies (NBFCs) to be listed by September 2025. The proceeds from the fresh issue will be used to bolster the company’s capital base to meet future capital requirements.

The book-running lead managers for the IPO include Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, and IIFL Securities Ltd.