Bajaj Housing Finance IPO Overview: Financials, Shareholding, and Market Position

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Bajaj Housing Finance IPO

About Bajaj Housing Finance

Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd and promoted by Bajaj Finance Limited and Bajaj Finserv Limited, has been an active player in the mortgage lending sector since fiscal 2018. As a non-deposit taking housing finance company, it primarily focuses on offering home loans, loan against property, lease rental discounting, and construction finance. The company has carved a niche for itself by leveraging the robust brand presence and financial expertise of its parent companies.

IPO Details

Bajaj Housing Finance is poised to enter the capital markets with its Initial Public Offering (IPO), having filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The IPO aims to raise up to Rs 7,000 crore, comprising a fresh issue of shares worth Rs 4,000 crore and an offer for sale by Bajaj Finance Ltd amounting to Rs 3,000 crore.

The net proceeds from the fresh issue are earmarked for enhancing Bajaj Housing Finance’s capital base to support future growth and business needs. Additionally, part of the funds will be utilized to cover the expenses related to the offer.

Bajaj Housing’s Shareholding Structure

Bajaj Housing Finance operates as a wholly-owned subsidiary of Bajaj Finance Ltd. In turn, Bajaj Finserv holds a significant 51.34% stake in Bajaj Finance, reinforcing the strategic alignment and financial backing within the Bajaj Group.

Company Financials

Bajaj Housing Finance has demonstrated strong financial performance, with a net profit of Rs 1,731 crore for the financial year 2023-24, marking a 38% increase from the Rs 1,258 crore recorded in FY23. Despite the reduction in the proportion of home loans to total assets under management (AUM) from 61.7% in the previous year to 57.8% as of March 31, 2024, the company has maintained solid profitability and growth metrics.

ParticularsFigures (in ₹ crore)
Asset Under Management91,370
Interest Income7,202
Interest Expenses4,692
Net Interest Expense2,510
Net Total Income2,925
Profit After Tax1,731

Peer Comparison

In the competitive landscape, Bajaj Housing Finance stands alongside several prominent housing finance companies. Here is a snapshot of the price-to-earnings (P/E) ratios of its listed peers:

Company NameP/E Ratio
LIC Housing Finance7.3
PNB Housing Finance12.4
Can Fin Homes12.9
Aadhar Housing Finance18.7
Aavas Financiers3.3
Aptus Value Housing Finance24.6
Home First Finance24.3

This comparison highlights the varied valuation multiples within the sector, reflecting differences in market positioning, growth potential, and operational efficiencies.