Bajaj Housing Finance Limited IPO Review
Neutral70-70 · Mainboard
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Analyst Verdict
Bajaj Housing Finance Limited IPO
Neutral
IPO at a Glance
Price Band
70-70
Issue Size
6560cr
Min. Investment
₹14,980
Opens
2024-09-07
Closes
2024-09-09
Listing
2024-09-14
Category
Mainboard
Key Strengths
✓The Company belongs to the Bajaj group, a prominent Indian conglomerate known for its diverse business interests across various sectors. As a wholly-owned subsidiary of Bajaj Finance Limited, the company is well-positioned to tap into its extensive experience in scaling financial services.
✓The company is the second largest HFC in India (in terms of AUM) having demonstrated a consistent growth trajectory with a diversified portfolio over its seven-year operational history, even amid challenging events such as the NBFC crisis, the downturn of key industry players and the unprecedented impacts of COVID-19.
✓It is the largest non-deposit-taking HFC (in terms of AUM) in India within seven years of commencing mortgage operations.
✓It is the second most profit-making HFC in India with a strong return on average assets and return on average equity for Fiscal 2024 and three months ended June 30, 2024.
✓It has the lowest GNPA ratio of 0.28% and NNPA ratio of 0.11%, among large HFCs in India.
✓The company’s strategic focus is on low-risk and fast-growing home loan customers. As of March 31, 2024, home loans contributed 57.8% of its AUM, of which 87.5% pertained to salaried customers, 4.3% to self-employed professional customers, and 8.2% to self-employed non-professional customers.
Key Risks
⚠The company may be impacted by volatility in interest rates, which could cause its Net Interest Income, Net Interest Margins, and the value of fixed income portfolio to decline and adversely affect the business, results of operations, cash flows, and financial condition.
⚠The company may face potential liquidity risks due to mismatches in the maturity of its assets and liabilities. Such mismatches, where the maturity of assets and liabilities do not match, are a key financial risk typical for a company in the business of lending.
⚠The Company is significantly exposed to real estate and any significant downturn or any adverse developments in the real estate sector may lead to an increase in impairment losses and adversely affect the business.
Frequently Asked Questions
Should I apply for Bajaj Housing Finance Limited IPO?
Based on our analysis, our rating for Bajaj Housing Finance Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Bajaj Housing Finance Limited IPO?
The company may be impacted by volatility in interest rates, which could cause its Net Interest Income, Net Interest Margins, and the value of fixed income portfolio to decline and adversely affect the business, results of operations, cash flows, and financial condition. The company may face potential liquidity risks due to mismatches in the maturity of its assets and liabilities. Such mismatches,
What are the strengths of Bajaj Housing Finance Limited IPO?
The Company belongs to the Bajaj group, a prominent Indian conglomerate known for its diverse business interests across various sectors. As a wholly-owned subsidiary of Bajaj Finance Limited, the company is well-positioned to tap into its extensive experience in scaling financial services. The company is the second largest HFC in India (in terms of AUM) having demonstrated a consistent growth traj
What is the price band of Bajaj Housing Finance Limited IPO?
The price band for Bajaj Housing Finance Limited IPO is 70-70. The IPO has closed.
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