The Bajaj Housing Finance IPO is seeing strong interest, with its subscription rate reaching over 3 times on the second day of bidding. This follows a 2.02 times subscription rate on the first day. By 11:09 am, bids for 2,17,98,61,352 shares had been received, compared to the issue size of 72,75,75,756 shares. Retail investors subscribed 2.37 times, non-institutional investors subscribed 6.82 times, and qualified institutional bidders subscribed 1.08 times.
Grey Market Premium (GMP)
The grey market premium (GMP) for Bajaj Housing Finance shares has risen to Rs 63-64, reflecting a 90% premium over the issue price.
IPO Details
- Price Band: Rs 66-70 per share
- Lot Size: 214 shares
IPO Review
Despite the premium valuations, analysts recommend subscribing to the IPO due to the strong backing of the Bajaj group, solid market position, and consistent financial performance. Analysts expect the company to show significant growth over the next 12-15 months, with a 25-30% increase in assets under management and a 14-15% return on equity.
Use of Proceeds
The funds raised will be used to strengthen the company’s capital base for future lending needs. Bajaj Housing Finance offers various mortgage products, including home loans and loans against property. For the fiscal year 2023-24, the company reported a net profit of Rs 1,731 crore, a 38% increase from the previous year, and net income rose 34% to Rs 7,618 crore.
Lead Managers
The book-running lead managers for the IPO include Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities.
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