Bajaj Housing Finance IPO subscribed 63x; GMP signals mega debut
The initial public offering (IPO) of Bajaj Housing Finance has concluded with an overwhelming response, amassing over ₹3 lakh crore in subscriptions. The IPO was oversubscribed by more than 63 times on the final day of bidding. This robust demand was primarily driven by institutional investors and non-institutional wealthy investors. The company's public issue, valued at ₹6,560 crore, received bids for over 4,622 crore shares against the 72.75 crore shares available for purchase on both BSE and NSE.
Investor categories show strong interest in Bajaj Housing Finance IPO
The non-institutional investor segment of the Bajaj Housing Finance IPO was subscribed 41.42 times. The quota set aside for Qualified Institutional Buyers (QIBs) saw an impressive subscription rate of nearly 209.36 times. Retail Individual Investors (RIIs) also showed significant interest, with their quota receiving close to 6.92 times subscription. This widespread interest across different investor categories underscores the strong market reception for this public issue.
Bajaj Housing Finance IPO's early success and future plans
The Bajaj Housing Finance IPO was fully subscribed within just four hours of opening for bidding on September 9. By the end of the second day, it had received 7.51 times subscription. The company has already raised ₹1,758 crore from anchor investors ahead of its public issue. The funds generated from this fresh issue will be utilized to bolster the company's capital base in anticipation of future capital needs.
Bajaj Housing Finance IPO's gray market premium surges
On the final day of subscription, the gray market premium (GMP) for Bajaj Housing Finance shares rose to around ₹65 in the unlisted market. This represents a premium of over 92% due to strong demand for the company's shares. The IPO comprises a fresh issue of equity shares worth up to ₹3,560 crore and an offer-for-sale (OFS) of equity shares amounting to ₹3,000 crore by parent company Bajaj Finance.
Bajaj Housing Finance's growth strategy and market position
Atul Jain, MD of Bajaj Housing Finance, revealed to CNBC-TV18 that the company has been growing at a CAGR of 31% on loans over the past three years. Despite being relatively smaller in size compared to the market, he expressed confidence in their growth trajectory and plans to diversify their loan book. Master Capital Services highlighted the company's omni-channel sourcing strategy, strong geographic presence, and distribution reach as key factors enabling it to acquire a large volume of customers annually.
