MUMBAI, 11 SEPTEMBER, 2024 (GPN): The Bajaj Housing Finance Limited IPO attracted bids for 46,22,86,03,782 shares, or 63.54 times against the issue size of 72,75,75,756 shares. Qualified institutional buyers led the massive response with 209.36 times bids or 37,17,70,59,692 against the allotted 17,75,75,756 shares. Non-institutional investors followed next with 41.43 times subscription, and retail investors bidding 6.94 times the allotted shares. The shareholder reservation portion saw 17.43 times subscription.

Highest ever number of applications (88.94 lakh applications) and demand (Rs. 3.24 lakh crore) received for any IPO at upper end of price band for a Net Public Issue of Rs. 4,802 crore (excluding anchor investor portion of Rs. 1,758 crore)

Bajaj Housing Finance Ltd. could possibly have market cap of over Rs. 1 lakh crore and could possibly become the most valued housing finance company and upper layer housing finance NBFC on Indian stock market.

In the unlisted market, Bajaj Housing Finance’s shares are trading at a premium of Rs 67-69, exceeding the previous day’s GMP of Rs 63-64. The current GMP translates to a 96% premium over the issue price.

Overall 63.56 times (Cumulative demand schedule as per BSE) at lower end of price band and 67.42 times (Source: Axis Cap) at upper end of price band

Attracted subscription of over Rs. 3.05 lakh crore (at lower end of Price Band) and Rs. 3.24 lakh crore (Source: Axis Cap) at upper end of price band

QIB portion subscribed 209.36 times (Source: BSE) at lower end of price band and subscribed 222.05 (Source: Axis Cap) at upper end of price band. Subscription in QIB category was Rs. 260,239 crore (Source: Axis Cap) at upper end of price band.

HNI-NII portion subscribed 41.46 times (Source: BSE) at lower end of price band and 43.97 (Source: Axis Cap) at upper end of price band. Subscription in HNI-NII category was Rs. 38,605 crore (Source: Axis Cap) at upper end of price band.

Retail portion subscribed 6.98 times (Source: BSE) at lower end of price band and 7.32 (Source: Axis Cap) at upper end of price band. Subscription in Retail category was Rs. 15,011 crore (Source: Axis Cap) at upper end of price band.

Shareholder portion subscribed 17.47 (Source: BSE) at lower end of price band and 18.45 (Source: Axis Cap) at upper end of price band. Subscription in Shareholder category was Rs. 9,226 crore (Source: Axis Cap) at upper end of price band.

Reflects strength of Bajaj brand.

Strong oversubscription in shareholder category reflects trust and faith reposed by Bajaj Finance and Bajaj Finserve shareholders who have had a first hand experience of gains, appreciation and returns

Bajaj Group cos – High on corporate governance

1. Bajaj Housing Finance Ltd. embodies values and legacy of Bajaj Group: Bajaj Finance and Bajaj Finserve

Ahead of the issue opening, the company has raised Rs 1,758 crore from marquee anchor investors, including JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund.
The company, promoted by Bajaj Finance and Bajaj Finserv, will raise around Rs 6,560 crore through the public offer, which is a combination of Rs 3,560 crore worth of fresh equity sale and an offer for sale (OFS) of Rs 3,000 crore.

The company primarily focuses on individual retail housing loans, supported by a diverse range of commercial and developer loans, serving customers from homebuyers to large developers.

For the fiscal year 2023-24, the housing lender posted a net profit of Rs 1,731 crore, marking a growth of 38% from Rs 1,258 crore in FY23. Net income during the same period rose 34% year-on-year to Rs 7,618 crore.