Bajaj Housing Finance IPO 2024 Highlights: Bajaj Housing Finance stock closed strong; check allotment, listing, GMP, date, time of the issue and trade on day 1

Through Anchor Investors, Bajaj Housing Finance‘s IPO raised Rs 1,758 crores. There were 251,142,856 shares offered in total. The end date for the lock-in period of 50 per cent share (30 days) is October 12, 2024. December 11, 2024 is the end day of the lock-in period for the remaining share (90 Days).

Bajaj Housing Finance plans to raise a total of Rs 7,000 crore through its first public offering (IPO).

1. Visit the Bajaj Housing Finance IPO allotment link at https://ris.kfintech.com/ipostatus/

2. Select one of the five available URLs on the homepage

3. Choose Bajaj Housing Finance IPO from ‘Select IPO’ drop-down option

4. Insert your PAN, Demat account number or application number

5. Enter application number/ Demat account information/ PAN number

6. Enter captcha code and click on ‘Submit’

On Monday, September 16 at 10 AM, Bajaj Housing Finance will list the shares on the BSE and NSE.

Bajaj Housing Finance reported a 38 per cent year-on-year increase in net profit. The company’s net profit in FY23 stood Rs 1,258 crore while it increased to Rs 1,731 crore in FY24. During the same time period, the net income increased 34 per cent to Rs 7,618 crore.

The much anticipated IPO‘s grey market premium (GMP) have surged to Rs 79 per share, signaling a notable premium over the issue price ahead of the listing date.

Motilal Oswal says, “Bajaj Housing Finance benefits from distinguished heritage of the “Bajaj” brand, which enjoys widespread recognition as a reliable retail brand. It has strong risk management framework which helps it to maintain stable asset quality. BHF is confident of maintaining stable NIM through borrowing cost optimization & has guided for leverage ratio of ~6x-8x. The IPO is fairly priced at 3x FY25 P/BV (on diluted basis).”

Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd., advises that after the listing, conservative investors should consider profit booking if the gains exceed expectations. Meanwhile, long-term investors might choose to hold their shares for future growth, as the sector outlook is optimistic due to the company’s strong business model. Tapse believes that the housing sector will continue to thrive over the next 3-4 years, and Bajaj Housing is well-positioned to lead the sector.

Anshul Jain, Head of Research, Lakshmishree Investment & Securities, says, “Bajaj Housing Finance shares are set to list on Monday, September 16, with expected gains of up to 120%, driven by strong grey market premium (GMP) trends. Currently, unlisted shares are trading at Rs 154 in the grey market, indicating a 120% premium. This suggests high investor interest and confidence in the company’s future. Investors should monitor the listing for potential significant returns.”

Prior to the launch of Bajaj Housing Finance’s IPO, the company secured Rs 1,758 crore from anchor investors including JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund.

Rajan Shinde, Research Analyst, Mehta Equities, says, “We believe Bajaj Housing Finance Ltd IPO gives investors an opportunity to invest in one of India’s leading players in the housing finance sector. As the 2nd largest Housing Finance Company (HFC) and the 8th largest NBFC-UL by AUM as of March 31, 2024, BHFL’s strategic diversification and robust risk management policies have driven an impressive AUM CAGR of 30.9% from Fiscal 2022 to 2024, making it the 4th fastest-growing HFC/NBFC in the country.”

Bajaj Housing Finance reported total borrowings of Rs 62,129 crore and revenue of Rs 7,617.71 crore for the fiscal year. The company’s profit after tax (PAT) for FY24 was Rs 1,731.22 crore, with reserves and surplus totalling Rs 5,520.81 crore.

Bajaj Housing Finance Ltd’s Rs 6,560-crore initial public offering (IPO) was oversubscribed by 63.60 times on Wednesday, the final day of bidding. According to NSE data, the IPO garnered bids for 46,274,843,432 shares, significantly exceeding the 7,275,756 shares on offer.

The lead managers for the Bajaj Housing Finance IPO are Kotak Mahindra Capital Company Ltd., BofA Securities India Ltd., Axis Capital Ltd., Goldman Sachs (India) Securities Pvt. Ltd., SBI Capital Markets Ltd., JM Financial Ltd., and IIFL Securities Ltd.

Retail investors must apply for at least one lot, which consists of 214 shares, totalling Rs 14,980. For non-institutional investors (NIIs), lot sizes vary from 14 to 67 lots, depending on the size of the investment.

Bajaj Housing Finance has set the price band for its IPO between Rs 66 and Rs 70 per equity share. The IPO aims to raise Rs 6,560 crore, with a portion allocated to fresh equity and the remainder through an Offer for Sale (OFS).

The performance by Bajaj Housing Finance IPO eclipses the previous record held by Tata Technologies, which received bids exceeding Rs 1.5 lakh crore for its Rs 3,000 crore IPO.

The Bajaj Housing Finance IPO has set new records, attracting bids worth over Rs 3.2 lakh crore. At the end of the subscription period, the IPO was oversubscribed by 63.6 times, with non-institutional investors driving the demand, subscribing over 200 times.

Bajaj Housing Finance‘s IPO has a total issue size of Rs 6,560 crore. This comprises a fresh issue of equity shares valued at up to Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore. The fresh issue aims to bolster the company’s capital base to support future growth and operational requirements.