The Bajaj Housing Finance IPO has generated a buzz reminiscent of a major blockbuster movie release, with investors eagerly awaiting their chance to participate in this high-profile offering. The public response has been nothing short of phenomenal, with the IPO attracting a massive Rs 3.2 lakh crore in bids, a testament to the high level of investor interest and enthusiasm surrounding the stock.
The allotment process faced delays, but the anticipation has only heightened as investors now focus on the potential listing gains from this eagerly awaited public offering. Industry experts are optimistic about the IPO’s market debut, attributing the positive outlook to the company's strong fundamentals and the prestigious backing of the Bajaj Group.
The IPO’s subscription rate reached an impressive 67.4 times, reflecting overwhelming investor demand. This is further underscored by the grey market premium (GMP), which has reached Rs 75.5, translating to a 107.8% premium over the issue price. This remarkable GMP indicates that investors could see substantial returns on their investments when the stock lists.
Shivani Nyati, Head of Wealth at Swastika Investmart, has highlighted the IPO's strong fundamentals and the company's consistent track record of revenue and profit growth. She emphasized that the association with the Bajaj Group adds a layer of credibility and trustworthiness to the offering. According to Nyati, the IPO’s valuation appears reasonable, which, combined with the company's solid financial performance and the high level of investor interest, positions Bajaj Housing Finance for a potentially successful debut on the stock market.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, echoed these sentiments, describing the IPO as a promising opportunity for investors. Tapse pointed out the company's strong parentage, its solid foothold in the housing finance sector, and its impressive assets under management (AUM) of Rs 97,071 crore. He noted that the company’s historical compound annual growth rate (CAGR) of 30.9% in AUM from Fiscal 2022 to 2024 reflects its potential for future growth. Tapse recommended that conservative investors consider profit booking if the listing gains exceed expectations, while long-term investors might benefit from holding the stock, given the optimistic outlook for the housing finance sector and Bajaj Housing Finance's strong market position.
The IPO was priced at Rs 70 per share, which corresponds to a market capitalization of Rs 58,297 crore. This valuation is in line with industry averages and reflects the company’s well-defined credit evaluation framework, robust collections infrastructure, and strategic investments. The backing of the Bajaj brand, coupled with ongoing investments in technology and diversified funding sources, enhances the company's appeal and may justify a premium valuation.
The latest GMP of Rs 79.50 suggests that Bajaj Housing Finance is likely to list at Rs 149.50, representing an impressive 113.57% gain over the issue price. This significant premium underscores the strong market sentiment and investor confidence in the IPO’s potential, setting the stage for a highly anticipated and potentially lucrative debut on the stock market.
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