The Bajaj Housing Finance IPO has emerged as one of the most highly anticipated public issues of the year, reflecting a surge of investor enthusiasm and strong market demand. With a substantial issue size of Rs 6,560 crore, the IPO has attracted a staggering amount of interest, with total bids reaching approximately Rs 3.2 lakh crore. This level of interest highlights the considerable excitement surrounding the listing, surpassing the GDP of several small nations and setting a remarkable precedent in the IPO landscape.
The IPO has been met with an overwhelming response, with an overall subscription rate of 67.43 times. The breakdown of subscriptions is particularly noteworthy: retail investors subscribed 7.41 times, qualified institutional buyers (QIBs) demonstrated exceptional interest with a subscription rate of 222.05 times, and non-institutional investors (NIIs) subscribed 43.98 times. The fresh issue of Rs 3,560 crore and an offer-for-sale (OFS) component of Rs 3,000 crore by the promoter, Bajaj Finance Ltd, have combined to create a high level of enthusiasm.
The price band for Bajaj Housing Finance's IPO was set between Rs 66 and Rs 70 per share. Investors had the option to apply for a minimum of 214 equity shares, with subsequent applications accepted in multiples of 214 shares. As of September 11, 2024, the Grey Market Premium (GMP) for the IPO stood at Rs 73, which translates to a projected listing price of Rs 143 per share. This suggests a potential gain of approximately 104.29% based on the cap price and the current GMP, reflecting strong positive sentiment in the market.
Several leading domestic brokerages have endorsed the IPO with 'Subscribe' recommendations, including prominent firms such as Chola Securities, IDBI Capital, Nirmal Bang Securities, and Reliance Securities. Their positive outlook underscores confidence in Bajaj Housing Finance's prospects and financial health.
Prior to the public issue, Bajaj Housing Finance successfully secured Rs 1,758 crore from 104 anchor investors. Among these investors are notable entities like the Government of Singapore, New World Fund Inc, Abu Dhabi Investment Authority (ADIA), Fidelity, and several domestic mutual funds and insurance companies. This strong backing from institutional investors has added considerable weight to the IPO.
Financially, Bajaj Housing Finance has demonstrated robust performance. For the quarter ending June 30, 2024, the company reported a net profit of Rs 482.61 crore on revenue of Rs 2,208.73 crore. For the fiscal year ending March 31, 2024, the company achieved a net profit of Rs 1,731.22 crore, with revenue totaling Rs 7,617.71 crore. These strong financial results reflect the company's solid operational performance and profitability.
The allotment of shares for the Bajaj Housing Finance IPO is anticipated to be finalized on September 12, 2024. Following the allotment, the shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date set for September 16, 2024. This IPO is not only significant for its size and market response but also for the potential impact it may have on the broader financial markets and investment landscape.
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