Bajaj Housing Finance will contribute to India's credit growth and enable greater access to finance, Sanjiv Bajaj said, after the company's shares clocked strong listing gains, more than doubling on debut.
This is the third company from the Bajaj Group to be listed, and Sanjiv Bajaj said he has been 'overwhelmed' by the response that investors have shown to the Bajaj Housing Finance IPO.
The mortgage lender has seen very strong growth, said Bajaj, and that has been in the backdrop of a very strong pace of economic expansion. This trend, Sanjiv Bajaj said will continue, adding that the demand for affordable housing will be 'far more as we grow'.
Read More: Missed Bajaj Housing IPO? Check if you should buy after the strong gains
"We expect steady credit growth at 12-15% in the housing industry, and on the back of that, we are enthused that we can grow strongly. The economy is showing very strong tailwinds and that's what gives us this comfort," Sanjiv Bajaj told CNBC-TV18 at the post-listing media briefing on September 16.
Sanjiv Bajaj added that he does not see any challenges in further raising capital, should the company require.
Bajaj Housing Finance is India's second largest HFC, and the largest non-deposit taking one, with diversified exposure and profitable growth. The company has clocked a PAT CAGR of 56% over the last two years.
Bajaj Housing Finance also has the lowest NPA ratio among large HFCs, said Kaku Nakhate, India head of BofA Securities.
Read More: Want to be the financial life cycle partner to every Indian: Sanjiv Bajaj
Investors have continued to show strong faith in the growth prospects of the company, with the shares of the company rising by another 10% on September 17, after a fresh set of Buy recommendations were issued by brokerages after listing.
India's mortgage penetration as percentage of GDP is at 9.4%, much lower than that of other developing economies. For South Africa, this figure stands at 21.4%, and for Malaysia it is at 35%. For China, this figure stands at 28%.
This is being updated
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