Bajaj Housing Finance IPO fully subscribed

by / ⠀News / September 13, 2024
Housing Finance

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

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.

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.

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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.

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders. MBA from Graduate School of Business. Former tech startup founder. Regular speaker at entrepreneurship conferences and events.

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