Bajaj Housing Finance IPO Fully Subscribed in Just 4 Hours on Day 1

Bajaj Housing Finance's Initial Public Offering (IPO) worth Rs 6,560 crore opened for bidding on Monday, September 9, and was fully subscribed within just four hours. The IPO saw a strong response from high net-worth individuals (HNIs), retail investors, and institutional buyers.

Subscription Details:

The IPO received bids for over 1,46,58,24,030 shares against the 72,75,75,756 shares on offer, resulting in an overall subscription of 2.01 times on the first day itself. The non-institutional investors (NII) category was subscribed 4.35 times, while the Retail Individual Investors (RII) category was subscribed 1.50 times. The Qualified Institutional Buyers (QIBs) portion saw a subscription of 1.07 times.

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Anchor Investor Response:

Ahead of the IPO, Bajaj Housing Finance raised Rs 1,758 crore from anchor investors on Friday. The public offer will close on September 11.

Price Band and Structure:

The IPO has a price band set between Rs 66 to Rs 70 per share. The issue comprises a fresh issue of equity shares worth up to Rs 3,560 crore and an offer for sale (OFS) of equity shares amounting to Rs 3,000 crore by its parent company, Bajaj Finance.

Use of Funds:

Proceeds from the fresh issue will be used to strengthen Bajaj Housing Finance's capital base and meet future capital requirements. The IPO is also part of compliance with the Reserve Bank of India's (RBI) guidelines, which mandate that upper-layer non-banking finance companies be listed on stock exchanges by September 2025.

Market Premium:

According to platforms tracking grey market premium (GMP) activities, Bajaj Housing Finance shares are currently commanding a premium of Rs 50-51 per share, indicating a potential listing gain of over 70% in the unregulated market.

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Company Profile:

Bajaj Housing Finance, a non-deposit-taking housing finance company, has been registered with the National Housing Bank since September 2015. The company offers a range of financial solutions, including home loans, loans against property, lease rental discounting, and developer financing. It has been classified as an "upper layer" NBFC by the RBI, reflecting its significant market presence and operations.

[Disclaimer: The information provided here is based on publicly available sources and is for informational purposes only. For more details, please refer to official announcements or consult with financial advisors.]