Bajaj Housing Finance has made a grand entry into the IPO market, shattering records with an overwhelming response from investors. The company’s IPO, open for subscription from September 9th to 11th, has set new benchmarks in the primary stock market, showcasing the immense trust and demand for Bajaj Housing Finance.
Bajaj Housing Finance IPO: Subscription Details
The Bajaj Housing Finance IPO was an incredible success; it subscribed over 60 times the offering amount. Investors bid a staggering ₹4 lakh crore for a ₹6,500 crore IPO, which included 50.86 crore fresh shares aggregating to ₹3,500 crore and an offer for sale of 42 crore shares aggregating to ₹3,000 crore. This monumental response is more than 1% of India’s GDP, slightly below ₹300 lakh crore in FY24.
Unprecedented Demand from Investors
The subscription data reveals that qualified institutional investors bid for over 3,700 crore shares, 222 times the amount offered. Retail investors also showed strong interest, bidding for 218 crore shares, seven times the amount provided. This highlights the broad-based demand and confidence in Bajaj Housing Finance’s growth potential.
Insights from Market Experts
Market experts have expressed mixed feelings about the frenzy surrounding the Bajaj Housing Finance IPO. Deepak Shenoy, founder of the PMS firm Capital Mind, remarked on social media that the situation is “scarier” than other recent market events. He pointed out that with ₹300,000 crore locked in bank accounts due to the overwhelming bids, less liquidity might be available if the market faces volatility soon. Shenoy’s insights underscore the risks associated with such high levels of investor enthusiasm.
Grey Market Premium and Investor Returns
Bajaj Housing Finance IPO’s grey market premium stood at ₹78 per share, issued at ₹70. This indicates that investors could potentially double their investment upon allotment. The market attributes this exceptional demand to the substantial brand value of its parent company, Bajaj Finance, which has delivered multi-bagger returns since its listing. For instance, ₹1 lakh invested in Bajaj Finance shares during its 2002 listing would now be worth ₹13 crore, highlighting the company’s impressive record of wealth creation.
Conclusion: What’s Next for Bajaj Housing Finance?
The success of Bajaj Housing Finance’s IPO is a testament to the robust investor confidence and the company’s promising outlook. With record-breaking subscriptions and a strong grey market premium, the IPO has set a new benchmark and raised expectations for future listings. As investors await the allotment, the focus will shift to the company’s performance in the stock market and whether it can live up to the hype generated by its spectacular debut.
FAQs
Ans: Retail investors bid for 218 crore shares, seven times the shares they offered, reflecting retail solid participation.
Ans: The high level of IPO subscription has locked in a substantial amount of funds, potentially reducing liquidity in the market and posing risks if the market experiences volatility in the short term.
Ans: Bajaj Housing Finance’s shares will debut on the BSE and NSE on Monday, September 16, at 10 a.m.
Ans: Bajaj Housing Finance started in 2008, is a housing finance company that doesn’t accept deposits. It was registered with the National Housing Bank (NHB) in 2015 and began offering mortgage loans in 2018.
