Bajaj Housing Finance Raises Rs 504.48 Crore Through NCD Allotment
Bajaj Housing Finance Limited (BHFL) has successfully raised Rs 504.48 crore by allotting 50,000 secured redeemable non-convertible debentures (NCDs) on a private placement basis. The NCDs have a face value of Rs 1,00,000 each, with a 7.10% annual coupon rate and a maturity date of October 16, 2028. This move strengthens BHFL's liquidity position, demonstrates market confidence, and diversifies its funding sources. The NCDs will be listed on BSE's Wholesale Debt Market Segment and are secured by a first pari-passu charge on book debts and loan receivables with a 1.00 times security cover.
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Bajaj Housing Finance Limited (BHFL) has successfully raised Rs 504.48 crore through the allotment of secured redeemable non-convertible debentures (NCDs) on a private placement basis. This move strengthens the company's financial position and demonstrates its ability to access capital markets effectively.
Key Details of the NCD Allotment
| Parameter | Details |
|---|---|
| Number of NCDs | 50,000 |
| Face Value | Rs 1,00,000 per NCD |
| Total Amount Raised | Rs 504.48 crore |
| Coupon Rate | 7.10% per annum |
| Interest Payment | Annual, starting October 16, 2025 |
| Maturity Date | October 16, 2028 |
| Listing | Proposed on BSE's Wholesale Debt Market Segment |
| Security | First pari-passu charge on book debts and loan receivables |
| Security Cover | 1.00 times the aggregate outstanding value of debentures |
Implications for Bajaj Housing Finance
This NCD allotment is significant for BHFL as it:
Enhances Liquidity: The raised funds will bolster the company's liquidity position, potentially supporting its lending activities and growth plans.
Demonstrates Market Confidence: The successful private placement indicates investor confidence in BHFL's financial stability and future prospects.
Diversifies Funding Sources: By tapping into the debt market, BHFL continues to diversify its funding mix, which is crucial for maintaining financial flexibility.
Competitive Pricing: The 7.10% coupon rate suggests that BHFL has secured funding at competitive terms, reflecting its strong credit rating and market position.
Market Context
The NCD allotment comes at a time when the housing finance sector is experiencing intense competition, particularly in the prime home loan segment. As revealed in BHFL's recent earnings call, the company has been facing pressure on margins due to aggressive pricing by public sector banks and other competitors.
Despite these challenges, BHFL has maintained a robust growth trajectory. In Q2 FY2026, the company reported:
- A 24% year-on-year growth in Assets Under Management (AUM), reaching Rs 1,26,749 crore
- An 18% increase in Profit After Tax (PAT)
- Improved asset quality with Gross Non-Performing Assets (GNPA) at 0.26%
Looking Ahead
The successful NCD allotment reinforces BHFL's financial strategy of maintaining a well-diversified borrowing mix. As the company continues to navigate a competitive landscape, this capital raise provides additional resources to pursue growth opportunities across its various business segments, including home loans, lease rental discounting, and affordable housing.
BHFL's management remains focused on balancing growth with risk management, aiming to deliver sustainable returns while maintaining a strong market position in the housing finance sector.
Historical Stock Returns for Bajaj Housing Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.40% | -1.63% | -1.03% | -11.37% | -16.78% | -34.79% |
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