On the third day of its initial public offering (IPO), Bajaj Housing Finance has seen a significant response from investors. The IPO, which aims to raise ₹6,560 crores, opened for subscription on September 9 and will close on September 11.

Bajaj Housing Finance IPO Subscription Status

As per the data provided by the stock exchanges, the Bajaj Housing Finance IPO has been subscribed 10.27 times as of the third day of bidding. The retail investor category has been subscribed 5.08 times, while the non-institutional investors category has seen a subscription of 22.93 times. The Qualified Institutional Buyers (QIBs) category has been subscribed 10.61 times.

The IPO's allocation structure reserves up to 50% of the shares for Qualified Institutional Buyers (QIBs), a minimum of 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Investors.

Bajaj Housing Finance IPO GMP

The Grey Market Premium (GMP) for the Bajaj Housing Finance IPO was at ₹69.50 on Wednesday. This was an increased from ₹66 reported on Tuesday. At current GMP, the stock is expected to be listed at ₹139.5, a premium of 99.29% over the upper price band of ₹70. However, investors should note that while GMPs can provide some insight into market sentiment towards an IPO, they are not always a reliable predictor of the stock's performance upon listing.

Bajaj Housing Finance IPO Details

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The IPO comprises a fresh issue of 50.86 crore shares amounting to ₹3,560 crores and an offer for sale of 42.86 crore shares aggregating to ₹3,000 crores. The price band for the IPO is set at ₹66 to ₹70 per share, with a minimum lot size of 214 shares. This translates to a minimum investment of ₹14,980 for retail investors.

The company intends to use the net proceeds from the offering to augment its capital base to meet future business requirements, particularly for onward lending. The shares of Bajaj Housing Finance are tentatively scheduled to be listed on both the BSE and NSE on Monday, September 16.

Prior to the IPO launch, the company successfully secured ₹1,758 crores from anchor investors, including the Government of Singapore, the Abu Dhabi Investment Authority (ADIA), Fidelity, Morgan Stanley, Nomura, Goldman Sachs, JP Morgan India Investment Trust Plc, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), Kotak Mahindra MF, SBI MF, UTI MF and Nippon India MF.

Bajaj Housing Finance Details

Established in 2008, Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015. The company offers a comprehensive range of mortgage products, including home loans, loans against property (LAP), rent concessions, and developer finance.

As of March 31, 2024, the company had 308,693 active customers, with 81.7% being home loan customers. The company operates a network of 215 branches in 174 locations across 20 states and three union territories, managed by six centralized retail loan review centres and seven centralized loan processing centres.

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