The Bajaj Housing Finance IPO 2024 is set to be one of the most awaited IPOs this year, with an issue size of ₹6,560.00 crores. The IPO will open for subscription on September 9, 2024, and close on September 11, 2024. Retail investors have the opportunity to invest in this exciting offer with a price band of ₹66-₹70 per share.
Bajaj Housing Finance IPO Key Information
- IPO Dates: September 9, 2024, to September 11, 2024
- Issue Size: ₹6,560.00 crores
- Price Band: ₹66 to ₹70 per share
- Lot Size: 214 shares
- Minimum Investment for Retail: ₹14,980
- Listing: BSE, NSE
- Key Book Running Lead Managers: Kotak Mahindra Capital, Bofa Securities, Axis Capital, and others.
Also Read -: Shree Tirupati Balajee IPO 2024: Key Dates, Issue Price, Allotment & Listing Details
How to Apply for Bajaj Housing Finance IPO
Apply Online via ASBA (Application Supported by Blocked Amount)
The ASBA method allows you to apply for the IPO while keeping your funds in your bank account. The amount gets blocked until the allotment, and once shares are allocated, the money is debited from your account. You can apply for the IPO through your bank’s net banking portal.
Steps to Apply via ASBA:
- Login to your Net Banking Account: Open your bank’s net banking site and log in using your credentials.
- Navigate to the IPO Section: Under the investment or services tab, find the IPO section.
- Select Bajaj Housing Finance IPO: Look for the current IPOs available and select the Bajaj Housing Finance IPO.
- Fill in the Details: Enter your demat account number, the number of shares you want to bid for, and the price. Choose the cut-off price if you want to apply at the final issue price.
- Confirm and Submit: Review your details and submit the application. Your funds will be blocked until the allotment process is finalized.
2. Apply through UPI (Using Broker’s Platform or UPI Apps)
Investors can apply through the UPI (Unified Payments Interface) method via an approved broker’s platform or UPI app.
Steps to Apply via UPI:
- Register with a Broker: Ensure you are registered with an approved stockbroker who offers UPI as a payment option for IPOs.
- Login to the Broker’s Platform: Use their website or mobile app to log in and access the IPO section.
- Select Bajaj Housing Finance IPO: Choose the IPO you want to apply for.
- Enter UPI ID: Provide your UPI ID and fill in other necessary details like the number of shares and bid price.
- Approve the Mandate: After submitting the application, you will receive a UPI mandate request on your UPI app. Approve it to block the funds.
3. Apply Offline through Your Bank or Broker
If you’re more comfortable with offline applications, you can apply through the physical ASBA form or via your broker.
Steps to Apply Offline:
- Obtain the ASBA Form: You can collect the form from your bank or download it from the bank’s website.
- Fill in the Details: Fill out your details, including your demat account number, PAN number, and the number of shares.
- Submit the Form: Submit the filled form at your bank’s branch, which will process your application and block the required amount in your account.
4. Check IPO Allotment Status
Once the IPO closes and allotments are made, you can check the status of your application through:
- Registrar’s Website (KFin Technologies): Visit the registrar’s website and enter your PAN, application number, or DP ID/client ID to check the status.
- Broker’s Platform: If you applied through a broker, you can also check the allotment status through their platform.
Bajaj Housing Finance IPO Lot Size:
Investors can bid for a minimum of 214 shares and in multiples thereof. The table below highlights the minimum and maximum investment requirements for Retail Investors and High Net-Worth Individuals (HNIs) based on the number of lots and the corresponding investment amounts.
| Investor Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 214 | ₹14,980 |
| Retail (Max) | 13 | 2,782 | ₹194,740 |
| S-HNI (Min) | 14 | 2,996 | ₹209,720 |
| S-HNI (Max) | 66 | 14,124 | ₹988,680 |
| B-HNI (Min) | 67 | 14,338 | ₹1,003,660 |
- Retail Investors can bid for a minimum of 1 lot (214 shares), amounting to ₹14,980.
- S-HNI investors must bid for a minimum of 14 lots (2,996 shares), which amounts to ₹209,720.
- B-HNI investors must bid for a minimum of 67 lots (14,338 shares), with a total investment of ₹1,003,660.
Bajaj Housing Finance IPO Growth Potential
The Bajaj Housing Finance IPO presents significant growth potential for investors, owing to several factors related to the company’s market position, financial strength, and the sector’s growth trajectory. Here are the key factors driving the growth potential of Bajaj Housing Finance IPO:
1. Strong Parentage and Market Position
Bajaj Housing Finance Limited (BHFL) is a subsidiary of Bajaj Finance Limited, one of India’s most trusted non-banking financial companies (NBFCs). With backing from the Bajaj Group, which has a diversified presence across sectors such as finance, insurance, and manufacturing, Bajaj Housing Finance enjoys a solid market position and credibility. This strong parentage ensures access to capital and expertise, which will help the company continue to grow its housing finance operations.
2. Rapid Growth in India’s Housing Finance Sector
India’s housing market is on the rise, driven by increasing urbanization, a growing middle class, and government initiatives like “Housing for All”. With demand for affordable housing surging, Bajaj Housing Finance is well-positioned to benefit from this growth. Additionally, low-interest rates and tax incentives for home loans are expected to fuel demand for housing loans, directly impacting the company’s growth.
3. Diverse Product Portfolio
Bajaj Housing Finance offers a range of mortgage products, including:
- Home loans for individuals
- Loan against property (LAP)
- Developer finance for real estate projects
This diverse product portfolio allows Bajaj Housing Finance to cater to various customer segments and expand its market reach. Additionally, by providing customized financial solutions, the company attracts a broad customer base, helping to drive business growth.
4. Robust Financial Performance
Bajaj Housing Finance has demonstrated strong financial growth over the past few years. The company’s loan book has grown consistently, reflecting increasing demand for housing finance. As of March 2024, Bajaj Housing Finance had over 308,693 active customers, with more than 81.7% being home loan customers. The company’s expanding customer base and consistent profitability are key indicators of its financial stability and growth potential.
5. Expansion of Branch Network
The company has been expanding its footprint across India, with a network of 215 branches spread across 20 states and three union territories. With plans to further expand its reach, Bajaj Housing Finance can tap into underserved markets in smaller cities and rural areas, boosting its growth prospects. This network growth will allow the company to serve more customers and increase its loan disbursals.
6. Technological Advancements
Bajaj Housing Finance is leveraging technology to streamline its operations, making it easier for customers to apply for loans and get quick approvals. The company’s focus on digital transformation and data analytics helps reduce operational costs, improve customer experiences, and enhance risk management, which contributes to long-term growth.
7. Competitive Advantage in a Fragmented Market
The housing finance market in India is highly fragmented, with numerous players ranging from small housing finance companies to large banks. Bajaj Housing Finance’s focus on customer-centric products, efficient underwriting processes, and competitive interest rates gives it an edge over its competitors. Its ability to cater to both individual borrowers and developers helps it stand out in a competitive market.
8. Potential for Future Strategic Partnerships
Bajaj Housing Finance’s strong foundation and growth trajectory could attract potential partnerships or acquisitions in the future, both domestically and internationally. Such collaborations could enable the company to scale its operations more rapidly and penetrate new markets, enhancing its long-term growth prospects.
9. Government Policies and Real Estate Reforms
Government initiatives such as PMAY (Pradhan Mantri Awas Yojana) and other real estate reforms are expected to boost demand for housing, especially in the affordable housing segment. As a key player in the housing finance sector, Bajaj Housing Finance is likely to benefit from these initiatives, enhancing its growth potential in the long run.
Outbound Links:
- SEBI Guidelines for IPOs:
- Link to the official SEBI guidelines to provide readers with detailed regulatory information.
- Example: “For more information on the regulatory framework, refer to the SEBI Guidelines for IPOs.”
- Bajaj Housing Finance Official Site:
- Link to the official website for the most accurate and up-to-date details about the IPO.
- Example: “Visit the Bajaj Housing Finance Official Site for official announcements and updates.”
- IPO Listing on BSE:
- Link to the BSE India page for IPO listing information.
- Example: “You can find the listing details on the IPO Listing on BSE page.”