Bajaj Housing Finance IPO subscribed over 42 times on Day 3 so far; GMP rises to 100% #CashNews.co

The initial public offering (IPO) of Bajaj Housing Finance was subscribed more than 42 times on the third and final day of bidding on Wednesday, September 11, led by strong demand from qualified institutional bidders.

The issue attracted bids for 3,108.25 crore equity shares, or 42.72 times against the issue size of 72.75 crore shares.

The retail portion of the IPO was booked 6.22 times, and the non-institutional investor category’s subscription rate stood at nearly 35.87 times. The quota for qualified institutional bidders was subscribed 130.24 times.

According to market observers, Bajaj Housing Finance’s grey market premium (GMP) stood at ₹69.50, reflecting a 99.29% premium over the issue price.

The company sold its shares in a fixed price band of ₹66-70 per share.

Promoted by Bajaj Finance and Bajaj Finserv, the company aims to raise ₹6,560 crore through the offer that includes a fresh share sale of ₹3,560 crore and ₹3,000 crore via offer-for-sale (OFS).

The issue proceeds will be utilised to augment the company’s capital base to meet future business requirements of the company towards onward lending.

The public offer needs to comply with the Reserve Bank of India’s mandatory requirement for “upper layer” NBFCs to list within three years of being notified i.e September 2025.

Founded in 2008, Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans since the financial year 2018. The company is part of the Bajaj Group, a diversified group of companies with interests in various sectors.

Housing finance market has grown at 13.1% over FY19-23, and Crisil expects a 13-15% growth over FY24-27. The company’s assets under management (AUM) stands at ₹91,370 crore as of FY24 and at ₹97,071 crore for the first quarter of FY25. The AUM growth has been at 30.9% and profit growth stood at 56.2% over FY22-24.

Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book-running lead managers to the IPO, while Kfin Technologies is the registrar.

The equity shares of the company will be listed on the exchanges on September 16.