Bajaj Housing Finance Limited (BHFL) has announced the complete utilization of the net proceeds from its Initial Public Offering (IPO) conducted in September 2024. The company has successfully deployed the entire ₹3,560 crore raised through the fresh issue component of its IPO, as confirmed by the monitoring agency report for the quarter ended June 30, 2025.

Efficient Capital Deployment

The monitoring agency report, prepared by CARE Ratings Limited, verifies that BHFL has utilized 100% of the net proceeds in line with the stated objectives outlined in its offer document. The company has allocated the funds as follows:

• ₹3,499.55 crore for augmenting its capital base to meet future business requirements towards onward lending
• ₹60.45 crore for share issue expenses

Ahead of Schedule Completion

Notably, BHFL has completed the utilization of funds well ahead of the March 31, 2025 timeline mentioned in the offer document. The company achieved full deployment by December 31, 2024, demonstrating efficient capital management and execution of its growth plans.

IPO Details and Fund Allocation

The total size of BHFL's IPO was ₹6,560 crore, comprising:

Compliance and Transparency

The monitoring agency report confirms that there were no deviations from the original plan, and all proceeds were used as disclosed in the prospectus. This adherence to the stated objectives underscores BHFL's commitment to transparency and regulatory compliance.

Implications for Growth

The timely and complete utilization of IPO proceeds for augmenting the capital base positions Bajaj Housing Finance Limited well for future growth. With a strengthened capital position, the company is poised to expand its lending activities and capitalize on opportunities in the housing finance sector.

As the housing finance market continues to evolve, BHFL's proactive approach to capital deployment may provide it with a competitive edge in meeting the growing demand for housing loans and related financial products.

Bajaj Housing Finance Limited (BHFL) has reported a strong financial performance for the first quarter of fiscal year 2026, with a 21% year-on-year increase in profit after tax. The company has also announced the full utilization of its Initial Public Offer (IPO) proceeds, demonstrating efficient capital deployment.

Financial Highlights

For Q1 FY26, BHFL posted a profit after tax of ₹583.00 crore, up from ₹483.00 crore in the same quarter last year. The company's assets under management (AUM) grew by 24% to reach ₹1,20,420.00 crore, compared to ₹97,071.00 crore in Q1 FY25.

Key financial metrics for the quarter include:

• Net interest income: ₹887.00 crore (33% YoY growth)
• Net total income: ₹1,012.00 crore (25% YoY growth)
• Profit before tax: ₹757.00 crore (20% YoY growth)

The company maintained a healthy asset quality with gross non-performing assets (GNPA) at 0.30% and net non-performing assets (NNPA) at 0.13% as of June 30, 2025.

IPO Proceeds Utilization

BHFL successfully completed the utilization of its IPO net proceeds, totaling ₹3,560.00 crore. The funds were deployed as follows:

• ₹3,499.55 crore for augmenting the capital base to meet future business requirements towards onward lending
• ₹60.45 crore for share issue expenses

The company completed the utilization ahead of the March 31, 2025 timeline mentioned in the offer document, with actual completion by December 31, 2024. No deviations from the original plan were reported.

Business Performance

BHFL's loan portfolio showed strong growth across various segments:

• Home Loans: 21% growth
• Loan Against Property: 30% growth
• Lease Rental Discounting: 29% growth
• Developer Finance: 32% growth

The company's AUM mix as of Q1 FY26 stands at:

Management Commentary

Atul Jain, Managing Director of Bajaj Housing Finance Limited, stated, "We have delivered a balanced quarter with 24% AUM growth, driven by our diversified product portfolio. Our focus on maintaining asset quality while expanding our business has resulted in a healthy financial performance."

Capital Adequacy and Credit Rating

As of June 30, 2025, BHFL's capital adequacy ratio stood at 26.94%, well above the regulatory requirement of 15%. The company continues to enjoy the highest credit rating of AAA/Stable for its long-term debt programme and A1+ for its short-term debt programme from CRISIL and India Ratings.

Conclusion

Bajaj Housing Finance Limited's Q1 FY26 results reflect its strong position in the housing finance sector, with robust growth in AUM and profitability. The full utilization of IPO proceeds ahead of schedule demonstrates the company's commitment to efficient capital management and its readiness to capitalize on future growth opportunities in the housing finance market.