Bajaj Housing Finance IPO: Over-Subscribed on Day One as Investors Snap Up Shares

Bajaj Housing Finance IPO has opened to strong response from investors, getting oversubscribed on day one. At 3 PM on September 9, the issue’s overall subscription stood at over 1.3x.

The quota for Non-Institutional Investors (NIIs) has seen the strongest response, with almost 3x bids. Subscription has been strong in the shareholder and retail investor quota as well, with both the segments already oversubscribed. Here’s what you need to know about this IPO.

Bajaj Housing Finance IPO Timeline

Bajaj Housing Finance's IPO opened for subscription on Monday, September 9. The share sale will remain open for three days, till September 11.

The allotment of shares to successful investors will occur on September 12, with demat allocation following on September 13. Refunds will also be initiated on September 13 for those who do not receive an allocation. The company will be listed on the stock exchanges on September 16.

The company has set a price band of ₹66-70 per share for its initial public offering, through which it aims to raise ₹6,560 crore.

Grey Market Buzz: Robust GMP

The much-anticipated IPO is generating significant buzz in the grey market, suggesting healthy listing gains for allottees. According to platforms tracking these unregulated markets, shares of Bajaj Housing Finance are currently commanding a premium of around ₹55 per share, indicating an anticipated return of at least 80% upon listing.

Bajaj Housing Finance: The Profile

Bajaj Housing Finance is a non-deposit-taking Housing Finance Company. Its core business is providing customers with loans primarily used to buy or renovate houses and commercial spaces. The company has been registered with the National Housing Bank since September 2015 and has been active in the mortgage lending business since financial year 2017-18.

Bajaj Housing Finance: The Strengths

Bajaj Housing Finance is India’s second largest housing finance company. A key element in its home loan portfolio is the fact that it has the highest salaried customer mix amongst large HFCs.

Why The Share Sale?

The Bajaj Housing Finance IPO is in line with Reserve Bank of India regulations, which mandate that upper-layer non-banking finance companies be listed by September 2025. The company plans to use the proceeds from the fresh issue to strengthen its capital base and meet future capital requirements.

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