Bajaj Housing Finance IPO Day 1: Should you subscribe? Check GMP, subscription status, review, key dates. #IndiaFinance

Bajaj Housing Finance Limited (BHFL), a major participant in India’s housing finance industry, is ready to launch its Initial Public Offering (IPO). On Friday, September 6, Bajaj Housing Finance disclosed that it has received ₹1,758 crore from anchor investors prior to initiating its first public share-sale for public subscription.

The public subscription for the highly anticipated Bajaj Housing Finance IPO will commence on September 9 and wrap up on September 11. The price band for the Bajaj Housing Finance IPO has been set at ₹66 to ₹70 per share for the public offering.

The Bajaj Housing Finance IPO has allocated up to 50% of the shares in the public issue for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and a minimum of 35% of the offer is set aside for retail investors.

Under the shareholders’ quota, Bajaj Housing Finance has set aside equity shares totalling up to ₹500 crore. This section, according to the firm, is reserved for individuals and Hindu Undivided Families (HUFs) that own public stock in the company’s promoters.

In addition to the standard reservations for retail, institutional, and non-institutional investors, Bajaj Housing Finance has set aside a specific quota for shareholders in the IPO.

In initial public offerings where the company’s parent companies are already listed on markets, a shareholders’ quota is typically provided. This is carried out as an exclusive perk to appease parent company shareholders.

Providing mortgage loans since the fiscal year 2018, Bajaj Housing financing is a non-deposit housing financing company. Driven by Bajaj Finserv Ltd and Bajaj Finance Ltd, Bajaj Housing Finance is a subsidiary of the Bajaj Group. Bajaj Housing Finance is a wholly owned subsidiary of Bajaj Finance, according to news reports. In Bajaj Finance, Bajaj Finserv owns a 51.34% stake.

Bajaj Housing Finance IPO Subscription Status

The initial public offer of Bajaj Housing Finance IPO has been subscribed 24% times on the first day of subscription today, at 10:57 IST, as per BSE data.

The initial share sale received bids for 17,30,16,860 shares against 72,75,75,756 shares on offer, according to BSE data.

The portion for retail investors received 27% subscription while the quota for non-institutional investors got subscribed 49%. The qualified institutional buyers (QIBs) part is yet to be booked. The employee portion has been subscribed 6%, and Shareholder portion has been subscribed 29%.

Bajaj Housing Finance IPO Review

Swastika Investmart Ltd

According to the brokerage, Bajaj Housing Finance gains from the famous Bajaj Group’s heritage. The business has shown stable sales and profit growth, as well as strong financial indicators. The IPO’s valuation is reasonable. There is a great deal of demand and expectation for the IPO.

We advise subscribing to the IPO in order to potentially benefit from listing gains and long-term value appreciation, given the company’s solid history, outstanding financial performance, and exciting market.

StoxBox

Research Analyst Prathamesh Masdekar at StoxBox states that Bajaj Housing Finance, which has an AUM of Rs. 971 billion as of Q1FY25, is the largest non-deposit-taking HFC promoted by Bajaj Finance. It has been lending money for mortgages since FY18. With a network of 215 branches, the HFC concentrates its segment efforts on the top 20–30 cities while concentrating its commercial sector activities in the top 8 metro areas.

Between FY22 and FY24, the company’s AUM increased at a compound annual growth rate of 30.9%. Given its current development trajectory, the firm is ranked by the RBI as the fourth fastest growing NBFC in India’s upper-layer category. Strategic focus on improving direct home loan origination and raising Average Ticket Size throughout its product suite has allowed the firm to show strong results.

Based on FY24 book value, the issue is fairly valued, with a P/BV of 3.8x on the upper price band. Because of this, the analyst advises a Subscribe rating for the issue. This is supported by a robust credit underwriting procedure and risk management structure that serve to minimize adverse effects on the asset quality.

Bajaj Housing Finance IPO Details

Bajaj Housing Finance IPO consists of an offer for sale (OFS) of equity shares by parent company Bajaj Finance for a total of ₹3,000 crore and a new issue of equity shares up to ₹3,560 crore.

The aim of the share offering is to satisfy the directive from the Reserve Bank of India (RBI) for higher layer non-banking financial organisations (NBFCs) to list on stock exchanges by September 2025.

To meet its future capital requirements, the firm will use the proceeds from the new offer to expand its capital base.

Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd are the book running lead managers for the offering.

Bajaj Housing Finance IPO GMP today

Bajaj Housing Finance IPO GMP today is +56. This indicates Bajaj Housing Finance share price were trading at a premium of ₹56 in the grey market, according to investorgain.com.

The estimated listing price of Bajaj Housing Finance share price was indicated at ₹126 apiece, considering the upper end of the IPO price band and the current premium in the grey market, representing an 80% increase from the IPO price of ₹70.

After analysing the grey market activities from the last 18 sessions, it is evident that today’s IPO GMP is on an upward trend, indicating a strong potential for listing. As indicated by experts on investorgain.com, the GMP ranges from ₹36 to ₹60, with ₹36 being the lowest and ₹60 being the highest.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.