Bajaj Housing Finance made a spectacular debut on the stock market on Monday, September 16, with its shares listing at ₹150, a staggering 114.29% higher than its initial public offering (IPO) price of ₹70, sending a strong signal of investor confidence and enthusiasm.
The listing price of Bajaj Housing Finance shares surpassed expectations, exceeding even the grey market predictions, where shares were trading at a premium of 107%. The grey market, an unofficial platform where shares are traded before the official listing, had hinted at a strong demand, but the actual listing price exceeded those estimates, indicating an even stronger investor interest.
The impressive debut of Bajaj Housing Finance was largely expected, considering the immense investor interest in its initial public offering (IPO), which saw a staggering subscription rate of 67.43 times, coupled with a significantly high grey market premium, setting the stage for a spectacular listing.
The successful listing underscores investors’ unshakeable faith in Bajaj Housing Finance’s solid financial foundation, bolstered by the reputation and stability of the esteemed Bajaj Group.”Bajaj Housing Finance’s consistent growth, coupled with its reasonable valuation, made it a highly attractive investment proposition.
For investors who secured Bajaj Housing Finance IPO shares, now may be an opportune time to lock in profits. Alternatively, those opting to hold their positions can consider implementing a stop-loss order at ₹135 to mitigate potential risks and protect their gains- an analyst added.
According to Prashanth Tapse of Mehta Equities,” The Bajaj brand has consistently delivered value to investors, and the housing finance business presents a similar opportunity to invest in a top-tier player in India’s housing finance sector. As anticipated, the IPO has already yielded impressive returns, doubling the wealth of allottees on the listing day.”
Sanjiv Bajaj, Chairman of Bajaj Housing Finance, expressed optimism about the company’s future prospects during a media interaction, citing a robust economic environment that has fueled strong growth so far. He emphasized that the company is well-positioned to sustain its growth momentum going forward.
The Bajaj Housing Finance IPO witnessed unprecedented demand, shattering records with the highest-ever bids by value in Indian history. The ₹6,560-crore offering drew bids worth a staggering ₹3.24 lakh crore, resulting in an overall subscription rate of 64 times.
The retail investor category saw a 7.04-fold oversubscription, while institutional investors showed overwhelming interest, with qualified institutional buyers subscribing 209.36 times and non-institutional investors booking 41.51 times their allotted quota.
We are confident that the housing sector will remain a high-growth area over the next 3-4 years, and Bajaj Housing Finance is well-positioned to capitalize on this trend and emerge as a leader in the industry.
Prior to the IPO’s opening, Bajaj Housing Finance secured a significant ₹1,758 crore through anchor investments from a prestigious group of investors, including the Government of Singapore, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, and JP Morgan, demonstrating strong institutional support for the company.
Bajaj Housing Finance, backed by Bajaj Finance and Bajaj Finserv, successfully raised ₹6,560 crore through its IPO, comprising ₹3,560 crore from new share issuance and ₹3,000 crore through an offer-for-sale (OFS). The proceeds will be used to strengthen the company’s capital base, enabling it to meet future business needs and support its lending activities.
Bajaj Housing Finance, established in 2008, is a leading non-deposit-taking Housing Finance Company (HFC) that has been registered with the National Housing Bank (NHB) since 2015. Commencing mortgage loan operations in 2018, the company has carved a niche for itself in the housing finance sector.
As a proud member of the esteemed Bajaj Group, a conglomerate with diverse interests across various industries, Bajaj Housing Finance benefits from a rich legacy of excellence and expertise.
