Bajaj Housing Finance IPO fully subscribed

The Bajaj Housing Finance IPO was fully subscribed within four hours of its launch on September 9, 2024.

#WATCH | #BajajHousingFinance saw a bumper #IPO with its shares subscribed 64 times, and the number of applications at a record 89 lakh!

With the grey market price indicating a listing premium of about 90%, is the entire housing finance sector poised for a re-rating? Listen in… pic.twitter.com/4iY5zKfpXs

— ET NOW (@ETNOWlive) September 12, 2024

The offering saw significant interest from various investor categories, resulting in an overall subscription rate of 2.02 times by the end of the first day. The Non-Institutional Investors (NII) category was particularly enthusiastic, with a subscription rate of 4.35 times. Retail Individual Investors (RIIs) also showed strong interest, leading to a subscription rate of 1.51 times. The Qualified Institutional Buyers (QIBs) segment received bids for 19 crore shares against the 17.75 crore shares available.

Editor's Take | Bajaj Housing Finance IPO receives a total subscription of Rs 3.24 lakh cr— Marks highest number of bids post covid!

Listen in as @nikunjdalmia shares the outlook on IPO markets! pic.twitter.com/717Om99zHA

— ET NOW (@ETNOWlive) September 12, 2024

The IPO has earmarked up to 50 percent of its shares for QIBs, 15 percent for NIIs, and at least 35 percent for retail investors.

I received lot of complaints yesterday that investors applied in Bajaj Housing Finance IPO through UPI but didn't receive mandates.

All those applications are REJECTED.

I tweeted about this problem earlier as well and had advised investors to opt internet banking instead of…

— R.K. (@ipo_mantra) September 12, 2024

Priced between ₹70 and ₹89 per share, the IPO includes a fresh issue of shares worth up to ₹3,560 crore, along with an offer-for-sale (OFS) component of ₹3,000 crore by its parent company, Bajaj Finance.

Bajaj IPO attracts strong investor interest

The funds raised from the fresh issue will be used to strengthen the capital base of Bajaj Housing Finance for future needs. This IPO complies with the Reserve Bank of India’s regulations, requiring upper-layer non-banking finance companies to be listed on stock exchanges by September 2025. Bajaj Housing Finance secured ₹1,758 crore from anchor investors ahead of the public subscription launch. Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd are serving as the book-running lead managers for the offering. The current Grey Market Premium (GMP) for the Bajaj Housing Finance IPO stands at +₹59, suggesting that the shares are trading at a premium price. Based on the upper limit of the IPO price range and the current GMP, the anticipated listing price of Bajaj Housing Finance shares is projected to be ₹129.5 per share. This represents an approximate 85% increase from the IPO price, indicating strong investor confidence. The ‘Grey market premium’ reflects investors’ readiness to pay more than the issue price, often a positive indicator of the stock’s potential performance on the official market.