Bajaj Housing Finance IPO Opens on Monday: Key Details and Shareholder Quota

Bajaj Housing Finance IPO Details:

Bajaj Housing Finance Limited is gearing up for the largest Initial Public Offering (IPO) of 2024, which is scheduled to open on Monday and will remain available for bidding until September 11, 2024. This IPO is a blend of fresh shares and an Offer for Sale (OFS), with the company aiming to raise ₹6,560 crore in total. Of this, ₹3,000 crore is reserved for the OFS, while the remaining ₹3,560 crore is allocated for the issuance of new shares.

The price band for the IPO is set between ₹66 to ₹70 per equity share, making it a notable event in the Indian primary market. As of today, the Grey Market Premium (GMP) for Bajaj Housing Finance shares stands at ₹55, reflecting strong demand and a 79% increase from the upper price band after the filing of the Red Herring Prospectus (RHP).

Eligibility for the Shareholder Quota:

Investors who held shares of Bajaj Finance or Bajaj Finserv on the RHP filing date, August 31, 2024, are eligible to apply under the Bajaj Housing Finance IPO shareholder quota. This quota provides a special opportunity for existing shareholders of these companies to participate in the IPO.

Bajaj Housing Finance IPO GMP:

Stock market analysts report that Bajaj Housing Finance shares are currently trading at a premium of ₹55 in the grey market, up from ₹42 prior to the RHP filing. This suggests a positive outlook and robust demand for the IPO, which is expected to generate substantial interest among investors.

Expert Analysis:

Financial analysts have noted that while Bajaj Housing Finance's IPO is priced higher than its peers—such as LIC Housing Finance (1.2x), PNB Housing (1.7x), and Can Fin Homes (2.7x)—it is justified by the company’s strong and diversified Asset Under Management (AUM) growth of 30% CAGR, low Non-Performing Assets (NPAs) under 1%, and a superior technology platform that enhances its competitive positioning. According to InCred, the upper price band of ₹70 per equity share represents a valuation of 3.2 times the June 2024 book value, factoring in the rights share allocation.

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Subscription and Listing Dates:

The IPO subscription period is from September 9 to September 11, 2024. Under the new T+3 listing rule, the allotment date is expected to be on September 12, 2024, with the listing date likely set for September 16, 2024.