Big Good News for IPO Investors: Bajaj Electricals IPO Promises High Gains:-
A big good news for IPO investors, if one of the most awaited IO bajajelectricals.com is available then there can be a profit of Rs 8000 and in HNE category, there are expectations of profit up to ₹ 2000000.
According to the gray market, I am very sure now. Your excitement must have increased. We are going to discuss a lot in today’s video but first of all let’s talk about an important exception which is going to be applicable in the IPO of Bajaj Housing Finance.
Important Exception in Bajaj Housing Finance IPO:-
Usually I tell that if in an IPO you If you are applying then file only one application with one PAN card, otherwise whatever application you have will be rejected upfront. In Bajaj Housing Finance IPO, you can file two applications, still you will be accepted. In which combination, let’s find out if you were a shareholder of Bajaj Housing Fund before the cut off date and the cut off date was 30th of August.
If in your DMAT account on 30th of August, don’t tell me you have now Why did I tell you long back, from August and mid itself, I had started telling you that in Retail or in Small HI or in Big HI, you can make any one application plus shareholder quota, two applications each from the same PAN. You will be able to file here, some of you will also think that we do not have shares for shareholder quota but we apply, what difference does it make, don’t do it, your application will be rejected up front, keep this in mind. That you should have shares to apply in shoulder quota.
I hope I have cleared these basics and discussed some important points. Along with this, now we will move to the detailed video where we will discuss the basics about this IPO. Take advance point from Let’s Go.
Company Background and IPO Dates:-
The company was basically incorporated in 2008. Non Deposit Taking Housing Finance. This is a company which has been registered under National Housing Finance since 2015 and provides market loans till today. So mainly their loan business is a very simple business. If we talk about the dates, this IPO will be held from 9th to 11th of September.
Before the IPO is about to open, it is important that you have a deet account in the name of each family member. Allotment will be decided on 12th of September. Refund or you will get your shares on 13th of September and on 16th of September. On the date of tentative listing, there will be a lot of 214 shares for you in retail.
Application Details for Retail and HNI Categories:-
There is going to be a basket of 14980 shares. When 136958 applications will come in the retail category, then the retail category will be one time subscribed, meaning the size of the IPO is very big, the allotment here will also be given to many people. Keep in mind that in HI Small category you will have to apply for 13 lots.
The minimum application required is 1397 and in AAI Big category you will have to apply for 67 lots. The minimum application required is 2794 for 2 and Share Holder Quota. There is also going to be a separate quota here in which the shareholder quota will be subscribed one time as soon as 33,728 applications are received.
The maximum number of shares that you can apply for in the shareholder quota is going to be 2792 shares. You cannot apply more than 2792 shares. The maximum basket of retail category in share holder quota is going to be your cut off here. If we talk about total allocation then QIB at 50 will be 35 retail and 15 AE.
IPO Size and Financials:-
The size of the IPO is going to be 6560 crores. This is a big size IPO. There is a fresh issue of 3560 crores and the balance is going to be an offer for sale of 3000 crores. You will feel relieved and happy after seeing the financials of the company. Total assets are increasing from 48000 crores to 88000 crores.
This means that look at the asset size on IPO, how much it has increased. Talking about the revenue, it has increased from Rs 3700 crore to Rs 7600 crore.
Key Metrics and Ratios:-
Return on Net Worth is 3.6, Price to Book Value is 3.72, EPS is 2.32 and P Ratio is coming out to be around 30. Look, what are the negative points in this company, I will have to tell them also, the most main negative point of this complete business. Their NPA ratio is that today the gross NPA ratio of the company is 0.27 which is controlled but if in the future it increases and goes above 50 then the company will face a lot of problems which becomes a negative point for them.
Potential Risks and Future Outlook:-
Next If the company ever faces any problem in debt financing then it can be an issue but usually I believe that if the company comes with a big brand name then here this issue does not become that big. The company’s home loan portfolio currently makes up the majority of its portfolio, and if we look at the percentage of loans given by the company to salaried individuals as of March 31, 2024, 87.5 percent.
If there is a situation of recession in the entire economy, If inflation increases in the economy, then the risk factors also increase. In mind also you kept about infation. What is the object of the issue? To maintain your capital base properly for future business requirements. Finally, if we do peer comparison before that.
Peer Comparison and Valuation:-
It is going to be useful to you for a long time. If we do peer comparison, then the first name that comes is LIC Housing Finance, P ratio is 7.3, PNB Housing Finance is 12.4, Can Fin. Homes P ratio is around 13 Base Housing Finance P ratio is 19 Housing P ratio is 25 Aptus Value Housing Finance’s P ratio is 25 Home First Finance Company’s P ratio is 25 Demanding a slightly richer valuation in Pearse’s comparison Which is trying to justify its brand value.
Conclusion: High Expectations from the IPO:-
Overall, there is going to be a lot of excitement about this IPO. There is going to be a lot of excitement among the normal investors in the entire IPO community and I too personally. I am very interested in this IPO. It is almost certain that I am going to study this IPO with great interest. Do tell me your view by commenting.