Bajaj Housing Finance IPO: The much awaited Rs 6,560-crore IPO (initial public offer) of Bajaj Housing Finance will open for public subscription today (9 September), with grey market premium signalling investors’ expectations of strong listing gains.
Bajaj Housing Finance had raised Rs 1,758 crore from anchor investors on Friday (6 September). Aadhar Housing Finance and India Shelter Finance are two other housing finance companies that have gone public on the stock exchanges in recent months.
Bajaj Housing Finance IPO, which opens on September 9, will close on September 11. The price band has been fixed at Rs 66-70 per share for the initial share-sale. The company plans to use the proceeds from the fresh issue to augment the capital base to meet future capital requirements.
Also Read | Bajaj Housing Finance raises Rs 1,758 crore via anchor book ahead of IPO
According to multiple platforms that track the grey market premium activities, the shares of Bajaj Housing Finance are commanding a GMP of Rs 50-51 per share, signalling a premium of over 70 percent in the unregulated market.
The proposed IPO comprises a fresh issue of equity shares of up to Rs 3,560 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 3,000 crore by parent Bajaj Finance.
The share sale is being carried out to comply with the Reserve Bank of India's (RBI) regulations, which mandate that upper-layer non-banking finance companies (NBFC) must be listed on stock exchanges by September 2025.
Bajaj Housing Finance is a non-deposit taking Housing Finance Company, registered with the National Housing Bank since September 2015. It provides financial solutions for purchasing and renovating both residential and commercial properties.
The RBI has classified it as an "upper layer" NBFC in India. Its wide range of mortgage products includes home loans, loans against property, lease rental discounting, and developer financing.
For the full financial year 2023-24, the housing lender reported a net profit of Rs 1,731 crore, reflecting a 38 per cent increase from Rs 1,258 crore in FY23.
In June, Bajaj Housing Finance submitted initial papers to Sebi for an IPO worth about Rs 7,000 crore, including fresh shares of Rs 4,000 crore and an OFS component of Rs 3,000 crore from its parent. The market regulator approved the company’s first public issue earlier this month.
The shares will be listed on the bourses on September 16.
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