Bajaj Housing Finance IPO: Record-Breaking Subscription and Anticipated Listing Performance
The recent public issue by Bajaj Housing Finance, amounting to an impressive ₹6,560 crore, has captured significant attention in the financial market. Closing with a staggering subscription of over ₹3 lakh crore, this IPO has shattered previous records held by notable companies such as Nykaa and Coal India. To put this into perspective, Nykaa’s IPO in November 2021 received bids of ₹2.43 lakh crore, while Coal India’s IPO in 2008 attracted ₹2.36 lakh crore. Zomato’s IPO in July 2021 also marked a high with over ₹2 lakh crore in subscriptions.
Anticipated Listing Day and Market Performance
Attention now turns to the listing of Bajaj Housing Finance shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), scheduled for September 16. Initial projections indicate that investors may see their investments double on the listing day. According to market reports, shares of Bajaj Housing Finance are currently trading at a premium of ₹81 in the gray market, reflecting a remarkable increase of 115.71% over the IPO’s upper price band of ₹70. If this trend continues, shares may be listed at around ₹151.
Subscription Breakdown
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers | 222 times |
| Non-Institutional Investors | 43.98 times |
| Retail Investors | 7.41 times |
| Employees | 2.13 times |
Expert Opinions and Investment Strategies
Market analysts, including Prashant Tapase from Mehta Equities, have shared insights regarding the listing of Bajaj Housing Finance. He recommends profit booking on the listing day if market gains exceed expectations. However, for long-term investors, holding onto the stock could prove beneficial given the robust outlook for the housing finance sector. Analysts are optimistic that the housing market will thrive over the next 3-4 years, positioning Bajaj Housing Finance to capitalize on these favorable conditions.
Utilization of Funds Raised from the IPO
The capital raised from this IPO will primarily enhance Bajaj Housing Finance’s financial base, enabling the company to expand its offerings in financing for home purchases and renovations, both for individuals and corporate entities. As a subsidiary of Bajaj Finance, the company is strategically positioned to leverage its parent’s established market presence and financial stability to drive growth.
Conclusion
With the high demand for Bajaj Housing Finance shares and a promising outlook for the housing finance sector, investors are keenly observing the forthcoming listing. As always, potential investors are encouraged to conduct their own research and seek professional financial advice before making investment decisions. The market remains inherently risky, and informed investments can lead to more favorable outcomes.
Disclaimer: The information provided here is for informational purposes only. It is crucial to recognize that investing in the market involves risks. Always consult expert advice prior to making investment choices.
