Bajaj Housing Finance IPO: An Overview
The highly anticipated initial public offering (IPO) from Bajaj Housing Finance, a prominent non-banking financial company (NBFC) under the Bajaj Group, has kicked off with great enthusiasm. This public issue, valued at ₹6,560 crore, opened on September 9, and the response has been overwhelmingly positive, with full subscription expected on its first day of bidding. Investors can continue to participate in the IPO until September 11, making it a pivotal investment opportunity.
Subscription Details
As of 1 PM on the opening day, the IPO was subscribed 0.80 times in total, indicating a strong interest from investors. Here’s a breakdown of the subscription rates:
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIBs) | 0.01 times |
| Non-Institutional Investors | 1.79 times |
| Retail Investors | 0.80 times |
| Employees | 0.18 times |
Key Dates and Listing Information
Investors eagerly await the allotment results, which are set to be finalized on September 12. Following the close of the IPO, shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 16, further enhancing market accessibility.
IPO Price Band and Lot Size
The price band for Bajaj Housing Finance’s IPO is set between ₹66 to ₹70 per share, with a minimum lot size of 214 shares. Ahead of the public offering, the company has successfully raised ₹1,758 crore from anchor investors, solidifying its financial foundation for the issue.
Introducing the Offer
In total, the IPO comprises the issuance of 50.86 crore new shares, expected to raise approximately ₹3,560 crore, along with an Offer for Sale (OFS) of 42.86 crore shares worth around ₹3,000 crore. The allocation strategy consists of 50% reserved for QIBs, 35% for retail investors, and 15% set aside for non-institutional investors. Additionally, existing shareholders of Bajaj Finance or Bajaj Finserv can benefit from a quota available to them, provided they held shares by the end of trading on August 30.
Market Expectations and Predictions
Market analysts and investors alike are optimistic about the upcoming listing day for Bajaj Housing Finance. Current gray market trends suggest that the company’s shares are trading at a premium of ₹57, equating to an impressive 81% markup over the upper price band of ₹70. This trend indicates that the stock might debut at around ₹127, highlighting significant profit potential for early investors.
Conclusion
The Bajaj Housing Finance IPO presents a compelling opportunity for various investor segments, especially given the promising subscription figures and anticipated premium on listing. As always, potential investors should conduct thorough research and consult with financial experts to make informed investment decisions, recognizing the inherent risks associated with market investments.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Market investments are subject to risks, and thorough due diligence is essential before engaging in financial activities.
