The highly anticipated Bajaj Housing Finance IPO has shattered historical records, drawing bids worth over Rs 3.2 lakh crore. The company aimed to raise approximately Rs 6,560 crore through a mix of fresh equity sale and an Offer for Sale (OFS).
At the close of the issue, the IPO was subscribed 63.6 times, reflecting robust demand, particularly from non-institutional investors, whose category was subscribed over 200 times.
This level of subscription is even more remarkable, given the presence of three other IPOs in the primary market—Kross, Tolins, and PN Gadgil.
Which was the previous record holding IPO?
The previous record was held by Tata Technologies, which saw bids worth over Rs 1.5 lakh crore for its Rs 3,000 crore IPO.
Tata Technologies, the first Tata Group company to launch an IPO in nearly two decades, has set the price band for its maiden public issue at Rs 475-500 per share. The company’s shares made a robust debut on the stock exchanges today.
On the NSE, Tata Technologies’ share price was listed at Rs 1,200 per share, marking a 140% premium over the issue price of Rs 500. Similarly, on the BSE, the stock was listed at Rs 1,199.95 per share.
Grey Market Premium (GMP) of Bajaj Housing Finance
Bajaj Housing Finance’s shares are currently trading at a premium of Rs 67-69 in the grey market, translating to a 96% premium over the issue price. This significant grey market interest underscores the strong demand for the IPO.
Anchor Investment and Capital Raising
Before the IPO’s opening, Bajaj Housing Finance raised Rs 1,758 crore from prominent anchor investors, including JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund. The net proceeds from the public offering will be used to bolster the company’s capital base, supporting its future business needs, particularly for onward lending.
Financial Performance of Bajaj Housing Finance
For the fiscal year 2023-24, Bajaj Housing Finance reported a net profit of Rs 1,731 crore, reflecting a 38% increase from Rs 1,258 crore in FY23. Additionally, net income for the same period grew 34% year-on-year, reaching Rs 7,618 crore.
With its record-breaking IPO and strong financial performance, Bajaj Housing Finance has established itself as a key player in the housing finance sector, poised for significant growth.
About Bajaj Housing Finance
Bajaj Housing Finance, a non-deposit-taking Housing Finance Company (HFC), has been registered with the National Housing Bank since September 2015. The company offers a wide range of tailored financial solutions for purchasing and renovating residential and commercial properties.
Recognized as an upper-layer Non-Banking Financial Company (NBFC) by the Reserve Bank of India (RBI), its portfolio includes home loans, loans against property, lease rental discounting, and developer financing.
The company primarily focuses on individual retail housing loans, supported by a diverse set of commercial and developer loans. Its customer base ranges from homebuyers to large developers.