Bajaj Housing Finance Ltd.'s initial public offering entered its third and final day on Wednesday after the issue was subscribed 7.51 times on its second day. It was subscribed 2.02 times on the first day.
The three-day offer entails a fresh issue of equity shares worth Rs 3,560 crore and an offer for sale worth Rs 3,000 crore from its owner, Bajaj Finance Ltd.
The price band is set at Rs 66–70 apiece. The issue will close on Sept. 11. BHFL raised Rs 1,757 crore from anchor investors on Friday.
The company opted for an IPO in order to comply with the Reserve Bank of India's listing requirement norms. It is a wholly-owned subsidiary of Bajaj Finance Ltd., which is a subsidiary of Bajaj Finserv Ltd.
The minimum application lot size is 214 shares. The offer, which concludes on Wednesday, is set to list on the BSE and the National Stock Exchange.
Bajaj Housing Finance IPO – Issue Details, Financials, Investment Rationale, Risks And Concerns: Motilal Oswal
Issue Details
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Issue opens: Sept. 9.
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Issue closes: Sept. 11.
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Issue price: Rs 66–70 per share.
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Total issue size: Rs 6,560 crore.
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Fresh issue: Rs 3,560 crore.
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Offer for sale: Rs 3,000 crore.
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Bid lot: 214 shares.
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Listing: BSE and NSE.
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Business
BHFL primarily focuses on providing mortgage loans to upper-end individual homebuyers, as well as large-scale developers in India. The company has an extensive distribution network of 215 branches as on June 30.
The company, which commenced mortgage lending in financial year 2018, is the largest non-deposit taking HFC in terms of assets under management. It also has the highest salaried customer mix in home loan portfolio among large HFCs and has the lowest gross-bad-loan and net-bad-loan ratios among large HFC peers in the industry.
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Use Of Proceeds
BHFL will use the proceeds from the public offer to augment the company's capital base to meet future business requirements and onward lending.
Bajaj Housing Finance IPO Subscription Status
The IPO was subscribed 41.77 times as of 2:24 p.m. on Wednesday.
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Institutional investors: 126.39 times.
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Non-institutional investors: 35.84 times.
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Retail investors: 6.22 times.
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Employee reserved: 1.76 times.
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Reservation portion shareholder: 15.70 times.
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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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