Bajaj Finance, Bajaj Finserv rise up to 3% ahead of Bajaj Housing Finance listing

The unlisted shares of Bajaj Housing Finance traded at a premium of Rs 75 per share

Investors lapped up shares of Bajaj Twins - Bajaj Finance, Bajaj Finserv as they rose up to 3 percent on September 13 ahead of much-awaited market debut of Bajaj Housing Finance on September 16. The Rs 6,560 crore IPO of Bajaj Housing Finance attracted highest number of bids by value ever in Indian history.

The public issue received bids worth Rs 3.24 lakh crore, with an overall subscription of nearly 64 times the share on offer. Qualified institutional buyers led the subscription with 209x, followed by non institutional investors at 41x, and retail investors at 7x.

Promoted by Bajaj Finance and Bajaj Finserv, the company intends to utilise the proceeds to augment future business requirements and onward lending. According to unlisted markets, the grey market premium of the public issue continued to remain above 100 percent due to strong enthusiasm among investors, setting the stage for a strong post-listing performance.

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The unlisted shares of Bajaj Housing Finance traded at a premium of Rs 75 per share, commanding a premium of 107 percent gain over the IPO issue price.

Earlier, Macquarie analysts said in a note that the bumper listing of Bajaj Housing Finance would trickle some benefits to parent entity - Bajaj Finance. They also suggested that this could lead to a re-rating of other housing finance companies.

Furthermore, analysts questioned whether Bajaj Housing Finance has the potential to become as significant as the former HDFC Ltd. Post-IPO, Bajaj Housing Finance's valuation is anticipated to be 2.6 times its projected book value for the fiscal year 2026.

Bajaj Housing Finance, a diversified NBFC based in Pune, serves over 76.5 million customers nationwide, providing financing to both individuals and corporate entities for the purchase and renovation of homes or commercial spaces.

Over the past one month, both Bajaj Finance and Bajaj Finserv have witnessed strong investor activity, driving shares up by 17 percent and 22 percent, respectively.

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