Bajaj Housing Finance IPO Opens with Price Band of ₹66-70 Per Share; Subscription Starts September 9

Bajaj Housing Finance Limited has announced the price band for its upcoming Initial Public Offering (IPO), set between ₹66 and ₹70 per equity share. The IPO will open for subscription on Monday, September 9, and will close on Wednesday, September 11. The company has scheduled the allocation to anchor investors for Friday, September 6.

The IPO will offer equity shares with a face value of ₹10 each, and the price band translates to a floor price of 6.6 times and a cap price of 7.0 times the face value. The lot size for the IPO is 214 shares, and investors can apply in multiples of this lot size.

In terms of allocation, Bajaj Housing Finance has reserved not more than 50% of the shares for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and 35% of the offer for retail investors.

Key Points:

• Bid Limits: Initially, the company had indicated no upper limit for shareholder quota bids, but an addendum now specifies a maximum bid limit of ₹2 lakh in this category.
• Important Dates: The basis of allotment is expected to be finalized on Thursday, September 12. Refunds will be initiated on Friday, September 13, with shares credited to demat accounts on the same day. Listing on the BSE and NSE is anticipated on Monday, September 16.
• Peer Comparison: Bajaj Housing Finance’s listed peers include 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.
• IPO Structure: The IPO consists of an offer for sale (OFS) of equity shares by the parent company, Bajaj Finance, totaling ₹3,000 crore, along with a new issue of equity shares up to ₹3,560 crore. The primary purpose of the share sale is to meet the Reserve Bank of India’s (RBI) mandate for upper-layer non-banking financial companies (NBFCs) to be listed on stock markets by September 2025. The proceeds from the fresh issue will be used to enhance the company’s capital base to support future growth.

Management and Lead Managers: The book-running lead managers for the IPO include 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.

This IPO marks a significant step for Bajaj Housing Finance as it looks to expand its presence in the capital markets and strengthen its financial foundation.