The share price of this prominent finance company increased by 5.4 percent after its subsidiary company received approval from Its board for the commencement of an Initial Public Offering ( IPO).
With a market capitalization of Rs 4,28,546 crores, at 12:30 pm. The shares of Bajaj Finance Limited moved up by 5.2 percent, trading at Rs 7,215.20 a piece on Friday’s afternoon session. Comparing today’s high of Rs 7,298.00 per share and a previous close of Rs 6,923.25 per share, the shares surged by 5.4 percent.
Bajaj Finance’s board of directors has approved an IPO which comprises a fresh issue of equity shares of up to Rs 4,000 crores, and an offer for sale of shares for its subsidiary company ‘Bajaj Housing Finance’. This is also subject to market conditions. The shares are priced at Rs 10 each, according to Mint.
In September 2022, RBI had released a list of NBFCs with Rs 50,000 crores of assets under management. Bajaj Housing Finance, which was part of the RBI list was required to be listed on stock exchanges by September 2025, also according to Financial Express.
Analyzing the financials of Bajaj Finance Ltd, The revenue from operations increased by 5.3 percent from Rs. 14,164 crores in Q3FY24 to Rs. 14,926 crores in Q4FY24. On a year-on-year basis, it increased by 32.7 percent from Rs. 41,398 crores in FY22-23 to Rs 54,969 crores in FY23-24.
The net profits of the company also witnessed an increase by 5.1 percent from Rs. 3,639 crores in Q3FY24 to Rs. 3,825 crores in Q4FY24. On a year-on-year basis, it increased by 25.5 percent from Rs. 11,508 crores in FY22-23 to Rs 14,451 crores in FY23-24.
As of March 2024, the ROE stood at 18.8 percent, the ROCE was 48.9 percent and the return on assets being 3.8 percent.
The shares of Bajaj Finance Limited have generated a multi-bagger return of 106.44 percent over the past 5 years and a monthly return of 5.4 percent.
Bajaj Finance Ltd derives its revenues from various products and services from categories such as loans, insurance, investment services, Bajaj Mall, payment services, pocket subscriptions, etc.
As of March 2024, its shareholding pattern stood at 54.69 percent for promoters, 10.35 percent for the public, 14.41 percent for domestic institutional investors, and 20.56 percent for foreign institutional investors.
Incorporated in the year 1987, Bajaj Finance Limited (“BFL”) is one of the largest Non-Banking-Financial-Company (“NBFC”) based in Pune The firm’s line of business includes providing services such as mortgages, personal and commercial loans as well as other financial services including broking and depository services.
Written By Zahal
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