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The Bajaj Housing Finance IPO, a highly anticipated event in the Indian financial market, has garnered tremendous interest from investors, with the issue being oversubscribed by a significant margin on its second day of bidding. As of 11:45 am on Tuesday, September 10, the IPO had received bids for over 250 crore shares, surpassing the 72.75 crore shares on offer. This strong demand follows the complete subscription of the issue within just four hours of opening on Day 1.
The robust subscription can be attributed to the enthusiastic participation of various investor segments. Non-institutional investors, particularly wealthy individuals, have shown a keen interest in the IPO, driving the subscription for their quota to a remarkable 8.21 times. Retail investors, who are typically less experienced but play a crucial role in IPOs, have also demonstrated strong confidence in Bajaj Housing Finance, with their quota being subscribed 2.58 times.
The IPO's success is further underscored by the strong performance in the qualified institutional buyers (QIB) category, which has received a subscription of 1.09 times. This suggests that institutional investors, including mutual funds and pension funds, see value in Bajaj Housing Finance and are willing to allocate capital to the company. The strong performance across all investor categories indicates a positive sentiment towards the company's growth prospects and its potential for long-term value creation.
Prior to the IPO, Bajaj Housing Finance successfully raised Rs 1,758 crore from anchor investors, including prominent entities like the Government of Singapore, Abu Dhabi Investment Authority, and leading mutual funds. This significant anchor investor participation signifies the confidence that institutional investors have in the company's future, further bolstering the IPO's appeal.
The IPO has a price band of Rs 66-70 per share and is expected to conclude on Wednesday, September 11. The offering comprises a fresh issue of equity shares worth up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares amounting to Rs 3,000 crore by its parent company, Bajaj Finance. The strong subscription levels and positive market sentiment surrounding the IPO suggest a potential listing gain for investors, as evidenced by the Grey Market Premium (GMP) currently hovering around Rs 60 in the unlisted market, indicating a potential listing gain of over 85 percent.