Bajaj Housing Finance, a diverse non-banking financial company (NBFC) under the Bajaj Group, is launching a major initial public offering (IPO) worth Rs 6,560 crore.
The IPO has already seen a strong response, being fully subscribed on its first day.
It started on September 9 and will be open for investments until September 11.
By 2 pm on the opening day, the IPO was fully subscribed. Specifically, the reserve portion for qualified institutional buyers was subscribed 0.02 times,
for non-institutional investors 2.34 times, for retail investors 0.99 times, and for employees 0.21 times.
IPO Details and Pricing
Shares from the IPO will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 16.
Bajaj Housing Finance provides financing for purchasing and renovating homes and commercial properties.
The funds raised from the IPO will be used to boost the company’s capital base.
The IPO’s price band is set between Rs 66 and Rs 70 per share, with a minimum lot size of 214 shares.
Before the IPO’s official opening, Bajaj Housing Finance secured Rs 1,758 crore from anchor investors.
After the IPO closes, share allotments are expected to be finalized on September 12.
The issue includes 50.86 crore new shares valued at Rs 3,560 crore and an Offer for Sale (OFS) of 42.86 crore shares worth Rs 3,000 crore.
Allocation and Shareholder Quota
The IPO allocation is divided as follows: 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
Additionally, shareholders who hold shares of Bajaj Finance or Bajaj Finserv as of the end of trading on August 30 are eligible for a quota in the issue.
Listing Expectations
The stock is anticipated to perform well on its listing day. It is currently trading at a premium of Rs 57, or more than 81% above the upper price band of Rs 70 in the gray market.
Based on this premium, the stock could list at around Rs 127.
