Bajaj Housing Finance Limited is set to launch its initial public offering (IPO) on Monday, making it the largest IPO of 2024. The IPO will be open for bidding from 9 to 11 September 2024. The Non-Banking Financial Company (NBFC) has set the price band for the IPO between ₹66 and ₹70 per equity share. The offer includes both fresh share issuance and an offer for sale (OFS).
IPO Size and Breakdown
Bajaj Housing Finance aims to raise ₹6,560 crore through this IPO. Of this, ₹3,000 crore is allocated for the OFS, while ₹3,560 crore will come from the sale of new shares. Shareholders of Bajaj Finance or Bajaj Finserv who held shares on the IPO filing date can apply under the shareholder quota.
Grey Market Premium (GMP)
Bajaj Housing Finance shares are currently trading in the grey market with a premium (GMP) of ₹55. This is an increase from the ₹42 premium seen before the Red Herring Prospectus (RHP) was filed. The GMP has risen by around 79% since the filing, reflecting strong market interest in the IPO.
Shareholder Quota
Those holding shares in Bajaj Finance or Bajaj Finserv as of 31 August 2024, the date of the RHP filing, are eligible to apply under the shareholder quota. In other words, if you owned shares in these parent companies by the end of trading on 30 August 2024, you qualify to apply in this category.
Valuation and Comparison
According to InCred Equities, Bajaj Housing Finance’s valuation is higher than its peers such as LIC Housing Finance (1.2x), PNB Housing (1.7x), and Can Fin Homes (2.7x). However, it is justified by the company’s strong asset growth, good asset quality, and advanced technology platform. The stock is priced at 3.2 times its book value as of June 2024, adjusted for rights share allocation.
IPO Subscription and Listing
The IPO will be open for subscription from 9 to 11 September 2024. Allotment is expected on 12 September 2024, and the stock is likely to list on 16 September 2024, in line with the T+3 listing rule.
Summary of Key Details:
- IPO Date: 9 to 11 September 2024
- Price Band: ₹66 to ₹70 per share
- GMP: ₹55 (as of today)
- Shareholder Quota: Available for Bajaj Finance and Bajaj Finserv shareholders as of 31 August 2024
- Listing Date: Likely on 16 September 2024
This IPO is expected to be a major event in the Indian stock market, attracting significant attention from both institutional and retail investors.
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