Bajaj Housing Finance, which opened for subscription on September 9, was subscribed over 7.51 times on the second day of bidding. The IPO will close on September 11.
Since September 2015, Bajaj Housing Financing has been registered with the National Housing Bank as a non-deposit taking housing finance company. It offers financing solutions for the purchase and renovation of both residential and commercial properties.
The Reserve Bank of India has designated it as a “upper layer” non-bank financial institution (NBFC). The company provides an extensive array of mortgage products, including home loans, loans secured by real estate, lease rental discounting, and developer financing.
Bajaj Housing Finance IPO subscription status
On the second day of subscription, Bajaj Housing Finance’s IPO has been subscribed 7.51 times, according to BSE data.
The retail investors’ allocation was oversubscribed by 3.84 times, while the non-institutional investors’ share was subscribed 16.46 times. The qualified institutional buyers (QIBs) portion received 7.46 times its allocation. The employee segment saw a subscription rate of 97%, and the shareholder portion was oversubscribed by 9.55 times.
The IPO was subscribed 2.02 times on its first day of subscription, according to BSE data.
The retail investor segment was subscribed 1.51 times, while the non-institutional investor quota saw a subscription of 4.35 times. The portion allocated to qualified institutional buyers (QIBs) was 1.07 times subscribed. The employee share was subscribed 32%, and the shareholder portion was subscribed 2.90 times.
Bajaj Housing Finance IPO details
The Bajaj Housing Finance IPO is a book-built issue totaling ₹6,560 crores. It consists of a fresh issue of 50.86 crore shares, amounting to ₹3,560 crores, and an offer for sale of 42.86 crore shares, aggregating to ₹3,000 crores.
The price band for the Bajaj Housing Finance IPO is set between ₹66 and ₹70 per share, with a face value of 10.
The purpose of this share offering is to comply with the Reserve Bank of India’s directive requiring higher layer non-banking financial companies (NBFCs) to list on stock exchanges by September 2025.
The company plans to use the funds raised from this offering to strengthen its capital base to support future growth.
The book running lead managers for the offering are Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd.
Bajaj Housing Finance IPO GMP
The GMP (Grey Market Premium) for Bajaj Housing Finance IPO today stands at +68. This means Bajaj Housing Finance shares are trading at a premium of ₹68 in the grey market, according to investorgain.com.
Given the upper end of the IPO price band and the current grey market premium, the estimated listing price for Bajaj Housing Finance shares is projected to be ₹138 each. This represents a 97.14% increase from the IPO price of ₹70.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.