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The upcoming initial public offering (IPO) of Bajaj Housing Finance is generating significant interest in the financial market. The IPO is scheduled to open for subscription from September 9th to 11th, 2024, with the aim of raising Rs 6,560 crore. This book-built public issue comprises a fresh issue of 50.86 crore shares, valued at Rs 3,560 crore, and an offer for sale of 42.86 crore shares, worth Rs 3,000 crore.
The price band for the IPO has been set between Rs 66 and Rs 70 per share. For retail investors, the minimum application requires 214 shares, translating to a minimum investment of Rs 14,980. The minimum lot size for sNII and bNII investors are 14 lots (2,996 shares) and 67 lots (14,338 shares), respectively, amounting to Rs 209,720 and Rs 1,003,660, respectively. The book running lead managers for the IPO are Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited, and IIFL Securities Ltd.
The current Grey Market Premium (GMP) for the IPO is Rs 53 as of September 3, 2024. This premium, reflecting the anticipated demand for the shares, leads to an estimated listing price of Rs 123, calculated by adding the cap price of Rs 70 to the current GMP. This translates to a potential gain of 75.71% per share, although it is important to note that actual market performance can vary significantly. Bajaj Housing Finance, established in 2008 and registered with the National Housing Bank (NHB) since 2015, is a non-deposit-taking Housing Finance Company (HFC) that commenced offering mortgage loans in financial year 2018.
The allocation of shares is expected to be finalized on September 12th, 2024, with the tentative listing date set for September 16th, 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The IPO is attracting attention due to Bajaj Housing Finance's strong presence in the housing finance sector and the potential for growth in the Indian real estate market. However, prospective investors should carefully analyze the company's financials, market conditions, and risk factors before making investment decisions.
The IPO is a significant event for Bajaj Housing Finance, providing the company with access to capital for further expansion and strengthening its position in the market. The strong demand for the IPO, reflected in the high GMP, suggests investor confidence in the company's prospects. However, it is essential for investors to conduct their own due diligence and consider the potential risks associated with this investment opportunity.
Source: Bajaj Housing Finance IPO: Check price band, issue size, dates and GMP