Bajaj housing finance limited is all set for an IPO as they have filed a DHRP with SEBI for their 7K Crore. Now with this new entity, Bajaj will have 3 companies Bajaj Finance and Bajaj Finserv which is already there and the new Bajaj Housing Finance. This will help Bajaj Housing Finance to self sufficient and the profit will be quite visible with this new company.
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With more and more Housing projects, more and more people are going for loan and thus these Housing finance companies are getting popular. This is mainly because these companies gives loans without a lot of verification which nationalized banks do. Yes that means the NPA of these companies will be on a higher side and to compensate that there interest rates are also higher.
With more rates, the profit will be more and eventually the share price will increase. Now coming back to getting ready. Just like what Tata Technologies have done for the IPO, there is a shareholding shares. That means in case of Tata Technologies if you had shares of Tata Motors you would be eligible for shareholders category. And in the same way, if you have Bajaj Finance or Bajaj Finserv shares you will be eligible for Bajaj Housing Finance shares allotment.
This is actually good because in retail quota, it is all lottery so if you have any other category to apply with two different applications then it is quite good. Just like Tata I have applied with retail and shareholding category, I got the allotment for shareholding and not for retail and thus this time also I will be ready for both. I have already bought 4 shares of Bajaj Finserv yesterday and will keep till the IPO starts and thus after that will sell with a profit of 6%.
