Synopsis: Bajaj Housing Finance Limited has allotted 2,00,000 secured redeemable non-convertible debentures on a private placement basis, aggregating Rs. 1,991.83 crore at a coupon of 7.83 percent per annum a tap issuance on an existing NCD series maturing in May 2029, continuing the company’s steady cadence of wholesale debt market fundraises to support its expanding home loan book.
Shares of one of India’s largest housing finance companies came into focus after the company disclosed a significant debt market fund raising a tap issuance on an existing NCD series that brings nearly Rs. 2,000 crore of secured long-term funding onto its books as of June 5, 2026.
With a market capitalisation of Rs. 70,174.92 crore, the shares of Bajaj Housing Finance Ltd were trading at Rs. 84.19 per share, up 0.96 percent from its previous closing price of Rs. 83.42 apiece as of 4 June 2026. It is trading at a P/E of 27.15.
Terms and Structure
The Debenture Allotment Committee met on June 5, 2026, and allotted 2,00,000 NCDs at a face value of Rs. 1,00,000 each. The total proceeds aggregate to Rs. 1,991.83 crore, inclusive of discount and accrued interest a formulation that indicates the issuance was structured as a re-opening of an existing ISIN rather than a fresh series, with pricing incorporating prior interest accruals. The effective principal raised is therefore marginally lower than the headline figure.
The coupon is fixed at 7.83 percent per annum, with interest payable annually. The payment schedule runs as follows: first interest payment on 18 May 2027, second on 18 May 2028, and the third interest payment together with full principal repayment on 18 May 2029. The residual tenure from date of allotment is 1,078 days placing the maturity in the three-year bucket, a duration that is standard for housing finance company wholesale borrowings.
Security cover is set at 1.00 times the aggregate outstanding value of debentures, constituted by a first paripassu charge on book debts and loan receivables. A 1x cover represents the regulatory minimum for secured NCD issuances from HFCs and is consistent with prevailing market practice for investment-grade housing finance issuers. The debentures are proposed to be listed on the Wholesale Debt Market segment of BSE Limited.
Liability Management
For a company with an asset under management base of Rs. 1,33,412 crore growing at 23 percent year-on-year as of December 2025, fundraisers of this scale are routine rather than exceptional. Housing finance companies are inherently asset-light in their own capital but structurally dependent on continuous access to long-duration wholesale funding to match-fund their home loan portfolios. NCDs raised on private placement typically placed with insurers, provident funds, and large institutional investors form a core part of that funding mix alongside bank lines, external commercial borrowings, and securitisation.
A tap issuance on an existing ISIN carries a specific operational logic: rather than launching a new series and incurring associated documentation and listing costs, the company re-opens a previously issued debenture at prevailing market rates for the remaining tenure. This format also preserves uniformity in the creditor pool for that ISIN, since all holders carry identical terms and maturity dates. The re-issue mechanism is widely used among top-rated HFCs and NBFCs when the original series has sufficient residual demand.
The 7.83 percent coupon on a three-year instrument reflects BHFL’s strong credit standing as a function of its Bajaj Finance parentage (86.7 percent promoter holding), its second-largest HFC status by AUM, and its track record of maintaining asset quality well within peer medians. At this coupon level, the instrument offers institutional investors a modest spread over corresponding government securities while carrying investment-grade secured credit risk.
Business Overview
Bajaj Housing Finance Ltd is a non-deposit-taking housing finance company registered with the National Housing Bank. Founded in 2008 and fully owned by Bajaj Finance Limited, it offers home loans, loans against property, lease rental discounting, and developer finance. For FY26, consolidated revenue stood at approximately Rs. 11,147 crore against a profit after tax of approximately Rs. 2,560 crore, reflecting steady growth on the back of a 23 percent AUM expansion.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
