Bajaj Housing Finance IPO: Public Issue Subscribed 33x On Final Day, GMP Hints Strong Listing; Check

The Initial Public Offering (IPO) of Bajaj Housing Finance, which opened for subscription on September 9, is set to close today, September 11, with overwhelming investor demand. The IPO has garnered attention and has been heavily oversubscribed across various investor categories. Bajaj Housing Finance, a non-deposit-taking housing finance company and a wholly owned subsidiary of Bajaj Finance, has set out to raise Rs 6,560 crore through this public offering.

As of the last day of the bidding process, Bajaj Housing Finance's IPO has been subscribed 33.29 times, signalling robust investor interest. According to data from the Bombay Stock Exchange (BSE) as of 1:39 pm today, the IPO has received bids for over 2,422 crore equity shares compared to the 72.75 crore shares on offer.

In terms of investor categories, the subscription rates reflect broad-based demand. The IPO has been subscribed 6.06 times in the retail category, Qualified Institutional Buyers (QIBs) have shown confidence, with the IPO being subscribed 93.94 times in this category, and the Non-Institutional Investors (NIIs) category has also witnessed demand, with a subscription rate of 33.38 times.

The Bajaj Housing Finance IPO consists of a mix of a fresh issue and an Offer for Sale (OFS). The fresh issue comprises 50.86 crore equity shares amounting to Rs 3,560 crore, while the OFS involves the sale of 42.86 crore shares worth Rs 3,000 crore by existing shareholders.

The shares are being offered at a price band of Rs 66 to Rs 70 per share, positioning the company as an attractive proposition for investors, especially given its financial performance and growth trajectory. The company has stated that the funds raised from the IPO will primarily be used to bolster its capital base, enabling it to meet its future lending needs.

One of the key indicators of market sentiment for any IPO is the grey market premium (GMP), and Bajaj Housing Finance has not disappointed in this regard. As of today, the GMP for Bajaj Housing Finance shares stands at a strong Rs 70 per share, reflecting a 100% premium over the upper price band of Rs 70.

This implies that Bajaj Housing Finance shares are currently trading at Rs 140 per share in the grey market, double the issue price. Such a significant premium indicates strong investor confidence and suggests that the company could see a robust listing once its shares debut on the stock exchanges. The listing is expected to take place on September 16, with shares set to be traded on both the BSE and NSE.

Analysts have largely given a positive outlook for Bajaj Housing Finance's IPO, pointing to the company's solid financial track record and growth potential. As of Q1 FY25, Bajaj Housing Finance has an Assets Under Management (AUM) of Rs 97,100 crore, which has grown at a compound annual growth rate (CAGR) of 30.9% between FY22 and FY24.

The company is the largest non-deposit-taking housing finance company (HFC) promoted by Bajaj Finance Ltd, which has added to the investor appeal of the IPO. Bajaj Housing Finance has carved a niche for itself within the non-banking financial company (NBFC) sector, ranking as the fourth fastest-growing NBFC in the upper-layer category as per the Reserve Bank of India (RBI).