Bajaj Housing Finance IPO
Bajaj Finance Group is known for its deep expertise in the Finance Industry. Through Bajaj Finance and Bajaj Finserv, it has created huge wealth for its shareholders in the following space.
Bajaj Housing Finance is one of Bajaj Finance’s two wholly-owned subsidiaries.
Founded in 2008, it is a non-deposit-taking housing finance company in India registered with the National Housing Bank since 2015.
- The company offers tailored financial solutions to individuals and corporate entities for the purchase and renovation of homes and commercial spaces.
- It has a comprehensive mortgage product suite comprising: (i) home loans; (ii) loans against property; (iii) lease rental discounting; and (iv) developer financing.
Speaking of the Housing Finance Industry
- According to CRISIL, the housing shortage in India was expected to rise to 100 million units by 2022, with an estimated demand for housing loans between ₹50 trillion to ₹60 trillion to address this issue.
- As of March 2023, the total overall outstanding housing loans (excluding Pradhan Mantri Awas Yojana loans) were approximately ₹28.73 trillion.
- This indicates that there is significant market potential in this segment which Bajaj wants to capture.
Bajaj Housing Finance IPO Objective
The company proposes to use the Net Proceeds from the Fresh Issue to augment our capital base and meet future business requirements for onward lending. This will help the company grow its loan portfolio and asset base.
| IPO Date | September 9, 2024 to September 11, 2024 |
| Listing Date | Sep 16, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹66 to ₹70 per share |
| Lot Size | 214 Shares |
| Total Issue Size | 937,142,858 shares (aggregating up to ₹6,560.00 Cr) |
| Fresh Issue | 508,571,429 shares (aggregating up to ₹3,560.00 Cr) |
| Offer for Sale | 428,571,429 shares of ₹10 (aggregating up to ₹3,000.00 Cr) |
Bajaj Housing Finance AUM & Focus
The primary focus of the company is on low risk and fast growing home loan customers.
AUM & Breakup: (As of FY24)
By the end of FY24, Assets under management (“AUM”) stood at ₹91370.40 crores, reflecting a CAGR of 30.9% between FY22 to FY24.
| Particulars | AUM (in ₹ million) | % of AUM |
| Home Loans | 528,196.00 | 57.8% |
| Loans Against Property | 95,679.30 | 10.5% |
| Lease Rental Discounting | 176,368.00 | 19.3% |
| Developer Financing | 95,993.30 | 10.5% |
| Others | 17,467.40 | 1.9% |
| Total AUM | 913,704.00 |
| Particular | Average Ticket Size (in ₹ million) |
| Home Loans | 4.6 |
| Loans Against Property | 5.8 |
Home Loans breakup:
| Particular | % of Home Loan AUM |
| Salaried customers | 87.5% |
| Self-employed professional customers | 4.3% |
| Self-employed non-professional customers | 8.2% |
By FY24, 75.8% of our home loan AUM were from customers with a CIBIL score above 750.
All of the above data points suggest that the company’s strategy is to focus on low risk & maximize profits. This is reflected in the company’s asset quality ratios. Among large HFCs in India, it has the lowest GNPA ratio of 0.27% and NNPA ratio of 0.10%.
Country Wise Presence of Bajaj Housing Finance
By FY24, company had over 308,693 active customers with a network of around 215 branches as at March 31, 2024, spread across over 174 locations in 20
states and three union territories.
Top 5 regions contribute to 85% of the total AUM.
| Region | % of total AUM | Branches |
| Maharashtra | 31.50% | 55 |
| Karnataka | 23.00% | 20 |
| Telangana | 14.80% | 12 |
| Gujarat | 8.00% | 29 |
| New Delhi | 7.70% | 6 |
