 |
|
The initial public offering (IPO) of Bajaj Housing Finance Ltd, a subsidiary of the Bajaj Group, garnered significant investor interest on its first day of bidding, exceeding expectations with a total subscription of 2.02 times. The IPO, aiming to raise Rs 6,560 crore, saw strong demand across various investor categories.
Non-institutional investors (NIIs) led the charge with a 4.35 times subscription, while the portion reserved for shareholders was subscribed 2.90 times. Retail investors also displayed enthusiasm, contributing a 2.90 times subscription. Qualified institutional buyers (QIBs) subscribed 1.07 times, while the employee portion saw a 32 per cent subscription.
The IPO, with a price band of Rs 66-70 per share, received 1,46,70,35,056 bids against 72,75,75,756 shares on offer. The issue is open until Wednesday, September 11, with investors required to apply for a minimum of 214 equity shares. The net proceeds from the IPO will be used to strengthen the company's capital base for future lending needs.
Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB) since 2015, offering mortgage loans since financial year 2018. The company, founded in 2008, boasts a strong brand equity associated with the Bajaj Group, known for its diverse businesses. The IPO also saw significant interest from anchor investors, with 104 investors committing Rs 1,758 crore before the public offering.
The grey market premium (GMP) for Bajaj Housing shares reached 87.86 per cent against the upper price band of Rs 70, suggesting potential listing gains. This strong GMP indicates investor confidence in the company's future prospects. Several domestic brokerages, including IDBI Capital, Nirmal Bang Securities, StoxBox, Chola Securities, and DR Choksey Finserv, have given a 'Subscribe' call to the IPO.
DR Choksey Finserv expressed optimism about Bajaj Housing's outlook, citing its strong brand equity, strategic expansion plans, wide geographic reach, and advanced technological infrastructure. These factors, combined with an omnichannel approach, are expected to enhance operational efficiency and maintain favorable credit costs, supported by superior asset quality.
Source: Bajaj Housing Finance IPO: Issue subscribed 2.02 times on Day 1; check GMP & key details