Bajaj Housing Finance IPO Sees Unprecedented Demand, Receives Rs 3.2 Lakh Crore Bids
Bajaj Housing Finance Ltd's IPO receives massive response from investors, with QIB category subscribed 209.36 times. The issue has received bids worth over Rs 3.23 lakh crore.
Bajaj Housing FinanceIpoQibNiiRetail InvestorsGrey Market PremiumListingBrokeragesReal Estate NewsSep 11, 2024
The portion reserved for non-institutional investors (NIIs) witnessed a subscription of 41.51 times, while the category reserved for shareholders was booked 17.52 times. Retail investors and employee portions saw 7.04x and 2.05x bids, respectively.
Overall, the issue received 46,28,42,48,276 bids against 72,75,75,756 shares on offer, with an overall subscription of 63.61 times. With this, Bajaj Housing apparently became the first company to cross Rs 3 lakh crore bidding value during the initial share sale phase. The IPO secured bids worth more than Rs 3.23 lakh crore.
The price band of the now-concluded Bajaj Housing IPO was fixed at Rs 66-70 apiece. Investors were able to apply for a minimum of 214 equity shares and in multiples thereafter.
Bajaj Housing is aiming to raise Rs 6,560 crore from its primary stake sale, which includes a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore from its promoter Bajaj Finance Ltd. The net proceeds from the issue will be utilised to augment the capital base to meet future business requirements of the company towards onward lending.
In the grey market, Bajaj Housing shares were last seen trading at a premium of 104.29 per cent against its issue price of Rs 70 (upper price band). The stock is likely to get listed on September 16.
Bajaj Housing's IPO was popular among investors, given the company's pedigree, strong presence, growing mortgage business, and the current buoyancy in the primary market. The stock is expected to stage a solid debut. If it delivers a strong listing pop, investors can consider booking some profit.
At least 16 domestic brokerages, such as Chola Securities, IDBI Capital, Incred Equities, Nirmal Bang Securities, Canara Bank Securities, Reliance Securities, Devan Choksey Research, Marwadi Shares, BP Equities, StoxBox, Mehta Equities, LKP Research, Ventura Securities, SMIFS, Gupta Equities, and Kunvarji Wealth Solutions, gave a 'Subscribe' call to the IPO.
Ahead of its IPO, the company raised Rs 1,758 crore from anchor investors. Bajaj Housing's anchor book included names like the Government of Singapore, New World Fund Inc, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, JP Morgan, and a host of domestic mutual funds and insurance players.
The company reported a net profit of Rs 482.61 crore with a revenue of Rs 2,208.73 crore for the three months ended on June 30, 2024. Its net profit came in at Rs 1,731.22 crore with a revenue of Rs 7,617.71 crore for the financial year ended on March 31, 2024.
Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the book-running lead managers, while Kfin Technologies is the registrar of the issue.
Frequently Asked Questions
What is the price band of the Bajaj Housing Finance IPO?
The price band of the Bajaj Housing Finance IPO is fixed at Rs 66-70 apiece.
How many times was the QIB category subscribed?
The QIB category was subscribed 209.36 times.
What is the expected listing date of Bajaj Housing Finance shares?
The stock is likely to get listed on September 16.
What is the grey market premium of Bajaj Housing Finance shares?
Bajaj Housing shares were last seen trading at a premium of 104.29 per cent against its issue price of Rs 70 (upper price band).
How much did Bajaj Housing raise from anchor investors?
The company raised Rs 1,758 crore from anchor investors.
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