Should You Apply for Bajaj Housing Finance IPO

We can apply for Bajaj Housing Finance IPO from today and we are gonna talk about whether we should apply for this IPO or not. Bajaj Housing Company is a Subsidy of Bajaj Finance and it is a Housing Finance Company which provides loans to individuals for purchase or renovation of homes. The loans includes home loans, loans against property or developer financing so it touches every customer segment.

Bajaj Housing Finance IPO is IPO of Rs 6,560.00 crores. It opens on September 9, 2024 and closes on September 11, 2024. The allotment for the Bajaj Housing Finance IPO is expected to be finalized on Thursday, September 12, 2024. Bajaj Housing Finance IPO will list on BSE, NSE with tentative listing date fixed as Monday, September 16, 2024. Bajaj Housing Finance IPO price band is set at ₹66 to ₹70 per share. The minimum lot size for an application is 214 Shares. The minimum amount of investment required by retail investors is ₹14,980.

If we talk about the Profit and Loss, the net profit is increasing year to year basis and the company is in profit from the last 4 years. Along with that the Earning Per Share is also continuously increasing. I have read the DHRP or Draft Red Herring Prospectus and found out that there are giving more and more loans and their assets and liabilities are increasing year to year basis. If you have 1 share of Bajaj Finance or Bajaj Finserv before 30th August, then you are eligible for the Share Holder quota. I am eligible and I can apply for both Retail and Sharholder quota.

After going through the details, I feel we should apply only because of the Brand Value of Bajaj Finance. Along with that as of today they are more concentrated in the 4 states but might expand further as their profit is constantly increasing. The GMP of the Bajaj Housing Finance is also good, so people can apply for listing gains.

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