Bajaj Housing Finance Receives Green Light for ₹4,000 Crore IPO

The board of directors of Bajaj Housing Finance, the top housing finance company in India, has given the go-ahead for the company to proceed with the IPO of equity shares at a price of Rs 10 each.

A plan for an initial public offering (IPO) that aims to raise Rs 4,000 crore through a fresh issue and an offer-for-sale (OFS) is approved by the board.

Company's Offerings

Bajaj Finserv owns 51.34 per cent of Bajaj Finance Limited, which is the parent company of Bajaj Finance Housing, is a fully owned subsidiary.

The home loan company provides a wide range of mortgage products to suit the needs of both salaried and self-employed clients, including home loans, loans secured by real estate, and lease rental discounts. Additionally, it offers developers inventory finance and construction finance.

Bajaj Housing Finance Performance

The housing lender posted a Rs 1,731 crore net profit for FY24, a 38 per cent YoY increase. As of March 31, 2024, the capital adequacy ratio (including Tier II capital) was 21.28 per cent, with a net non-performing asset (NPA) of 0.10 per cent.

The percentage of home loans to total assets under management as of March 31, 2024, was 57.8 per cent, down from 61.7 per cent the year before.

The mean ticket size for home loans among salaried clients is Rs 46 lakh, with over eight out of ten of these people being salaried workers. currently only operates in 174 locations as of March 31, 2024. The loan against property segment caters to a large number of self-employed and affluent customers. The average ticket size for borrowers is around Rs 57 lakh per transaction.

Bajaj Finance Q4 2024

During the fiscal year 2024, Bajaj Finance's net profit increased by 21.1 per cent year over year to Rs 3,824.53 crore in the fourth quarter, which concluded on March 31. In comparison to the same quarter of FY23, net interest income (NII) increased by 21.1 per cent to Rs 3,824.53 crore from Rs 3,157.8 crore.