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The IPO season has been buzzing this year, and Bajaj Housing Finance’s public offering has become the hottest ticket in town.
Both big and small, investors rushed in to grab their share of this Rs 6,560-crore IPO, which has attracted a whopping Rs 3.2 lakh crore in bids.
To put that in perspective, the total bids exceed the GDP of several smaller nations, making this one of the most anticipated listings of 2024.
Record-breaking demand
The IPO has garnered incredible attention, with a subscription rate of 67.43 times overall. Retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs) all piled in, hoping to capitalise on the listing day excitement.
By the end of bidding on September 11, 2024, the retail category was subscribed 7.41 times, while the QIB segment saw a staggering 222.05 times subscription.
Meanwhile, NIIs subscribed 43.98 times over.
The frenzy has been further fuelled by a rising Grey Market Premium (GMP), which crossed 100%.
As of September 12, 2024, the GMP stood at Rs 78, signalling a projected listing price of Rs 148 per share—an impressive 111.43% gain from the upper price band of Rs 70.
What’s driving the hype?
Bajaj Housing Finance’s IPO includes a fresh issue of Rs 3,560 crore and an offer-for-sale (OFS) worth Rs 3,000 crore by promoter Bajaj Finance Ltd. The offering has been priced between Rs 66-70 per share, with investors required to apply for a minimum of 214 shares.
Much of the excitement comes from strong institutional backing. The QIB category alone witnessed overwhelming demand, pushing total bids to over 46 billion against the 72.7 million shares on offer.
This institutional interest was bolstered by a prior anchor investment round, where Bajaj Housing Finance raised Rs 1,758 crore from prominent investors like the Government of Singapore, ADIA, Fidelity, and New World Fund Inc.
How to check the allotment status
Investors who have bid for Bajaj Housing Finance IPO can check their allotment status online through either the BSE website or the website of Kfin Technologies Limited, the registrar for the issue.
Steps to check allotment through the BSE website:
Visit the BSE website.
Click on ‘Equity’.
Select ‘Bajaj Housing Finance Limited’ from the list.
Enter your application number and PAN card details.
Verify the CAPTCHA and submit.
Steps to check allotment through Kfin Technologies:
Visit the Kfin Technologies website.
Select ‘Bajaj Housing Finance Limited’.
Choose the option to check via Application Number, Demat Account, or PAN.
Enter the necessary details and the CAPTCHA.
Click ‘SUBMIT’ to view your allotment status.
Financially strong
Bajaj Housing Finance’s strong financial performance has further heightened interest in the IPO.
The company posted a net profit of Rs 482.61 crore in Q1FY25 on revenue of Rs 2,208.73 crore.
For the full fiscal year ending March 31, 2024, Bajaj Housing Finance reported a net profit of Rs 1,731.22 crore and total revenue of Rs 7,617.71 crore.
With a healthy balance sheet and a steady growth trajectory, investors view Bajaj Housing Finance as a promising player in India’s booming housing finance sector.
What lies ahead?
The IPO allotment is expected to be finalised on September 12, 2024, with listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) likely on September 16, 2024.
Investors are betting on a strong debut, especially given the IPO’s overwhelming demand and the positive market outlook from brokerages like Chola Securities, IDBI Capital, Nirmal Bang Securities, and Reliance Securities, all of which have given the IPO a ‘Subscribe’ recommendation.
Therefore, for investors, Bajaj Housing Finance’s IPO could be good opportunity to tap into the growth of a well-established brand.
With the allotment process to be completed today, the focus now shifts to the listing of shares on September 16.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)