10 Important Things to Check in the Red Herring Prospectus for Bajaj Housing Finance IPO Before Subscription Opens on September 9
Bajaj Housing Finance Limited IPO is launching its initial public offering (IPO) on September 9, 2024, aiming to raise ₹6,560 crore from investors.
As an “Upper-layer” NBFC according to the Reserve Bank of India (RBI), Bajaj Housing Finance Ltd. needs to be listed on the stock exchanges by September 2025 to meet RBI requirements.
Here are 10 important things to consider for the Bajaj Housing Finance IPO
1. IPO valuation
The non-banking lender has set the IPO at ₹6,560 crore, with each share priced at ₹10. The company is offering new shares and selling existing shares in this public listing.
2. IPO offer structure details
Bajaj Housing Finance plans to raise ₹3,560 crore by issuing new shares, each priced at ₹10. They also aim to raise ₹3,000 crore by selling existing shares, also priced at ₹10 each. Together, this makes the total value of the IPO ₹6,560 crore, according to the company’s Red Herring Prospectus (RHP).
3. IPO dates
The non-banking lender’s IPO will start accepting subscriptions on Monday, September 9.They will announce the price range for the IPO on Tuesday, September 3. You can bid for shares during a three-day window, which will close on Wednesday, September 11. The IPO will open for anchor investors on Friday, September 6, according to the filing.
4. IPO Allocation details
Bajaj Housing Finance plans to give up to 50% of the shares in the IPO to Qualified Institutional Buyers (QIBs) based on demand. They may allocate up to 60% of the QIB shares to anchor investors. The company will offer at least 15% of the shares to non-institutional investors (NII) and at least 35% to retail investors, according to the RHP filing.
5. Book-running managers and Registrar
The book runners for the public issue are Kotak Mahindra Capital, Bofa Securities, Axis Capital, Goldman Sachs, SBI Capital Markets, JM Financial, and IIFL Securities. Kfin Technologies is the registrar.
6. Promoter
Bajaj Finance Limited is selling shares worth ₹3,000 crore at ₹10 per share.
7. IPO Objective
The non-banking lender plans to use the money from the public offer to boost its funds for future loans and cover the costs of the offer.The company will gain brand recognition and a public presence by being listed on the stock market.
8. Total asset under management (AUM)
As of June 2024, the company’s assets under management (AUM) were ₹97,071.33 crore, up from ₹74,124.26 crore a year earlier.
9. Details on how the IPO money will be used
The company will use the IPO money during the 2024-25 financial year. According to the filing, the company will spend the funds based on its business plan, management’s estimates, current market conditions, and other relevant factors.
10. Information about the Company
Bajaj Housing Finance, founded in 2008, is a non-banking financial company fully owned by Bajaj Finance. As part of the Bajaj Group, it offers tailored financial solutions for buying and renovating homes and commercial properties. Its range of housing finance products includes home loans, loans against property, rent concessions, and developer finance.
Conclusion
Before subscribing to Bajaj Housing Finance’s IPO on September 9, 2024, it’s crucial to thoroughly review the Red Herring Prospectus. Key areas to focus on include the IPO’s valuation, offer structure, and the exact dates for bidding. Understanding the allocation details and the role of book-running managers and the registrar is also important. Pay attention to the promoter’s stake, the IPO’s objectives, and how the funds will be utilized. Lastly, familiarize yourself with the company’s background and its assets under management. Being well-informed will help you make a more confident investment decision.
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