Bajaj Housing Finance IPO: Price band set at ₹66-70 per share; check details

Bajaj Housing Finance IPO price band: The Bajaj Housing Finance Limited IPO price band has been fixed in the range of ₹66 to ₹70 per equity share of the face value of ₹10. The Bajaj Housing Finance IPO date of subscription is scheduled for Monday, September 9, and will close on Wednesday, September 11. The allocation to anchor investors for the Bajaj Housing Finance IPO is scheduled to take place on Friday, September 6.

The floor price and the cap price are 6.6 times and 7.0 times the face value of the equity shares respectively. The Bajaj Housing Finance IPO lot size is 214 equity shares and in multiples of 214 equity shares thereafter.

Bajaj Housing Finance IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

“Earlier, Bajaj Housing Finance mentioned that there was no upper limit for the shareholder quota bid; one could apply up to the total size of the shareholder quota, which is ₹500 crore. They also stated that if you applied for more than ₹2 lakh, you would not be eligible to apply in the retail or HNI categories. However, the company has now filed an addendum stating that the maximum bid limit in the shareholder quote is ₹2 lakh,” said Avinash Gorakshakar, Head-Research at Profitmart Securities.

Tentatively, Bajaj Housing Finance IPO basis of allotment of shares will be finalised on Thursday, September 12, and the company will initiate refunds on Friday, September 13, while the shares will be credited to the demat account of allottees on the same day following refund. Bajaj Housing Finance share price is likely to be listed on BSE and NSE on Monday, September 16.

The company's listed peers, according to the DRHP, are 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.

Bajaj Housing Finance operates as a non-deposit housing finance firm and has been engaged in providing mortgage loans since fiscal year 2018. Bajaj Housing Finance is a subsidiary of the Bajaj Group and promoted by Bajaj Finance Ltd and Bajaj Finserv Ltd. As per news report , Bajaj Housing Finance is a 100% subsidiary of Bajaj Finance. Bajaj Finserv holds a 51.34% interest in Bajaj Finance.

Bajaj Housing Finance IPO details 

Bajaj Housing Finance IPO consists of an offer for sale (OFS) of equity shares by parent company Bajaj Finance for a total of ₹3,000 crore and a new issue of equity shares up to ₹3,560 crore.

The purpose of the share sale is to fulfill the Reserve Bank of India's (RBI) mandate that by September 2025, upper layer non-banking financial organisations (NBFCs) must be listed on stock markets.

The company's capital base will be increased using the proceeds from the fresh issue in order to satisfy its future capital needs.

The book running lead managers for the offering consist of 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.

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