BAJAJ HOUSING FINANCE IPO: HDFC MF, ICICI PRU, GIC SINGAPORE, MORGAN STANLEY LIKELY TO GET ANCHOR BOOK ALLOCATION
The Rs 6,560-crore initial public offer (IPO) of Bajaj Housing Finance is likely to see marquee names like HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Singapore sovereign wealth firm - GIC, Goldman Sachs Asset Management and Morgan Stanley Asia among others participate as anchor investors, said sources familiar with the development to Moneycontrol.
The public issue, which will open for subscription on September 9, comprises of a fresh issue of shares worth Rs 3,560 crore, while its parent company, Bajaj Finance, will sell shares worth Rs 3,000 crore through an Offer for Sale (OFS) component.
The price band of the offering has been fixed between Rs 66 and Rs 70 per share. At the upper end of the price band, the company's post-issue market capitalisation is expected to be around Rs 58,300 crore.
The IPO will close for subscription on September 11.
Here are the key details of the IPO:
Price Band: The price range for the IPO is Rs 66 to Rs 70 per share. Investors can apply for a minimum of 214 equity shares and multiples thereafter.
Listing Date: The IPO will be listed on September 16. Early trends in the grey market indicate a strong debut for the shares.
Offer Structure: 50% of the offer (approximately Rs 2,930 crore) is reserved for Qualified Institutional Buyers (QIBs); 15% (around Rs 879 crore) will be allocated to Non-Institutional Investors (NIIs); 35% (approximately Rs 2,051 crore) is reserved for retail investors.
Utilisation of Proceeds: The proceeds from the OFS component will go to Bajaj Finance, the parent company. According to the draft document, the fresh issue proceeds will be used to augment Bajaj Housing Finance’s capital base to support future business growth, particularly for onward lending.
About the Company: Bajaj Housing Finance, a non-deposit-taking housing finance company registered with the National Housing Bank since September 2015, began mortgage lending in FY18. With an AUM of Rs 97,100 crore as of June 30, Bajaj Housing Finance is the second-largest housing finance company in India and is wholly owned by Bajaj Finance. As of June 30, the company had nearly 3.24 lakh active customers, with 83.2 percent being home loan customers. Its loan disbursements were Rs 12,003.51 crore for the quarter ended June 30, 2024.
Financial Performance: Bajaj Housing Finance reported total revenue from operations of Rs 22,086.5 crore for the quarter ended June 30, 2024. For FY24, the company's total revenue stood at Rs 76,173.1 crore, compared to Rs 56,647.3 crore in FY23. Profit after tax (PAT) for FY24 was Rs 1,731 crore, up from Rs 1,257.8 crore in FY23.
Lead Managers: The book-running lead managers for the IPO are Kotak Mahindra Capital, BofA Securities India, Goldman Sachs (India), SBI Capital Markets, JM Financial, Axis Capital and IIFL Securities. KFin Technologies has been appointed as the IPO registrar.
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2024-09-05T10:54:20Z dg43tfdfdgfd