Bajaj Housing Finance IPO Sees Strong Demand, Expected Listing Gains Soar
The Bajaj Housing Finance IPO has been subscribed 8 times on its second day, with the grey market premium standing at Rs 65. The expected listing price is around Rs 135, suggesting a gain of 92.86% per share.
Bajaj Housing Finance IpoBajaj FinanceKotak Mahindra Capital CompanyHousing Finance CompanyIpo Listing GainsReal Estate NewsSep 10, 2024
The company is offering its shares in the price range of Rs 66-70 each, with investors able to apply for a minimum of 214 shares and in multiples thereafter. Bajaj Housing Finance aims to raise Rs 6,560 crore through the IPO, with Rs 3,560 crore coming from a fresh share issue and Rs 3,000 crore from an offer-for-sale (OFS) by Bajaj Finance.
The IPO's three-day bidding period will end on Wednesday, September 11. Founded in 2008, Bajaj Housing Finance is a non-deposit-taking housing finance company registered with the National Housing Bank (NHB) since 2015. It has been providing mortgage loans since the financial year 2018 and is part of the diversified Bajaj Group.
Brokerages view the IPO positively, recommending subscription for the long term due to the company's solid parentage, strong market position, growing assets under management (AUM), reasonable cost of funds, and strong growth potential. However, concerns include asset concentration and exposure to the real estate sector.
Ahead of the IPO, Bajaj Housing Finance raised Rs 1,758 crore from anchor investors by allocating 25,11,42,856 equity shares at Rs 70 each. For the quarter ended June 30, 2024, the company reported a net profit of Rs 482.61 crore and revenue of Rs 2,208.73 crore. For FY23, the net profit was Rs 1,731.22 crore on revenue of Rs 7,617.71 crore.
As the largest non-deposit-taking housing finance company in India, Bajaj Housing Finance plans to strengthen its market position with strategic focus on customer needs and risk management. The company aims to leverage technology and analytics to enhance productivity and reduce costs.
The book running lead managers for the IPO include Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities. Kfin Technologies is the registrar for the issue. Shares are expected to be listed on both BSE and NSE on September 16, 2024.
Bajaj Finance is a diversified NBFC (Non-Banking Financial Company) with a strong presence in the financial services sector. The company has a long history of delivering strong financial performance and has a solid track record of growth.
Kotak Mahindra Capital Company is a leading investment bank in India, providing a range of financial services including equity capital markets, debt capital markets, and mergers and acquisitions.
Frequently Asked Questions
What is the price range of the Bajaj Housing Finance IPO?
The price range of the Bajaj Housing Finance IPO is Rs 66-70 per share.
How much does Bajaj Housing Finance aim to raise through the IPO?
Bajaj Housing Finance aims to raise Rs 6,560 crore through the IPO.
What is the expected listing price of the Bajaj Housing Finance IPO?
The expected listing price of the Bajaj Housing Finance IPO is around Rs 135, suggesting a gain of 92.86% per share.
Who are the book running lead managers for the IPO?
The book running lead managers for the IPO include Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities.
When are the shares expected to be listed on the stock exchanges?
The shares are expected to be listed on both BSE and NSE on September 16, 2024.
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