Bajaj Housing Finance IPO Debut: GMP Surges 113%, Investors Eye Strong Gains Ahead of Sept 16 Listing

Bajaj Housing Finance is set to list its shares on the stock exchange on Monday, 16th September, after receiving a strong response to its IPO. The shares are trading at a grey market premium (GMP) of around 113% above the issue price just two days before the listing.

If this trend continues, investors could see multibagger returns on the first day of trading. The IPO was oversubscribed by 67.4 times, showing high investor interest due to the company’s strong fundamentals and market outlook.

Bajaj Housing Finance has consistently shown growth in both revenue and profit. The company’s ties to the Bajaj Group add credibility and trust for investors.

“The IPO valuation is reasonable, which has further boosted investor confidence. With solid financial performance and a reputable brand, Bajaj Housing Finance is expected to have a successful market debut,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

The funds raised from the IPO will help strengthen the company’s capital base to support future lending needs. Bajaj Housing Finance, registered with the National Housing Bank since 2015, offers customised financial solutions for buying and renovating both residential and commercial properties. The RBI has also classified it as an upper-layer non-banking financial company (NBFC).

The company focuses mainly on individual housing loans, along with other services such as loans against property, lease rental discounting, and developer financing, catering to both homebuyers and large developers.

In the fiscal year 2023-24, Bajaj Housing Finance reported a net profit of ₹1,731 crore, a 38% increase from ₹1,258 crore in the previous year. Its net income also grew 34% year-on-year to ₹7,618 crore during the same period.