Bajaj Housing Finance IPO, which concluded its second day of bidding today (10 September), has been subscribed 7.50 times, driven by continued strong demand from non-institutional wealthy investors and retail investors.
The much-awaited Rs 6,560-crore IPO of Bajaj Housing Finance has received bids for over 545 crore shares on Tuesday, compared to 72.75 crore shares on offer.
Bajaj Housing Finance public issue was already fully subscribed on Day 1, within just four hours of opening. All three major segments -- institutional investors, non-institutional investors, and retail investors -- were oversubscribed by the end of Day 1.
Also read | Should you subscribe to Bajaj Housing Finance IPO? Check GMP, other updates
The non-institutional investors’ quota (NII) continued to see robust demand on Day 2, with 16.45 times subscription. The retail individual investors’ quota (RII) was subscribed 3.83 times. The category for Qualified Institutional Buyers (QIBs) has received 7.46 times subscription.
Earlier, on Friday, Bajaj Housing Finance raised Rs 1,758 crore from anchor investors ahead of the IPO, including Government of Singapore, Abu Dhabi Investment Authority, HDFC Mutual Fund (MF), UTI MF and Nippon India MF among the major ones.
Bajaj Housing Finance has set a price band of Rs 66-70 per share for the IPO, which will conclude tomorrow, 11 September. The offering includes 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.
The IPO's Grey Market Premium (GMP) is currently at Rs 60 in the unlisted market, indicating a potential listing gain of over 85 percent.
The share sale is being conducted to meet the Reserve Bank of India's (RBI) rules, which mandate that upper-layer non-banking finance companies must be listed on stock exchanges by September 2025. The funds raised from the fresh issue will help boost the company's capital base to meet its future financial needs.
Bajaj Housing Finance, a non-deposit-taking housing finance company, has been registered with the National Housing Bank since September 2015. It provides financial solutions for buying and renovating both residential and commercial properties.
The RBI has identified Bajaj Housing Finance as an "upper layer" NBFC. Its range of mortgage products includes home loans, loans against property, lease rental discounting, and developer financing.
Recently, Aadhar Housing Finance and India Shelter Finance, two housing finance companies, have been listed on the stock exchanges.
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