Bajaj Housing Finance shares made an impressive entry into the stock market on Monday, September 16, with the share price listing at ₹150 per share, which is 114.29% higher than its issue price of ₹70. This strong debut was anticipated by market analysts, who had predicted a robust listing due to the heavy demand seen during the IPO process.
Bajaj Housing Finance Shares Listed at ₹150 on BSE and NSE
Bajaj Housing Finance shares opened at ₹150 per share on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), effectively doubling the investors’ money upon listing. The IPO listing was in line with market expectations, as experts had forecasted a strong start for the stock.
Record IPO Subscription of Over ₹3 Lakh Crore
The strong listing was backed by overwhelming demand for the company’s Initial Public Offering (IPO), which received bids for over ₹3 lakh crore. Investors showed strong interest, bidding for more than 4,628 crore shares, while only 72.75 crore shares were available for allotment. This led to the IPO being oversubscribed by an impressive 63.61 times.
IPO Bidding and Allotment Details
The bidding for the Bajaj Housing Finance IPO took place from September 9 to September 11, with the allotment of shares finalized on September 12. The IPO offered shares in a price band of ₹66 to ₹70 per share, with the company raising a total of ₹6,560 crore through this public issue.
Breakdown of Funds Raised
The ₹6,560 crore raised by Bajaj Housing Finance consisted of a fresh issue of 50.86 crore shares, which generated ₹3,560 crore. In addition, there was an offer-for-sale (OFS) of 42.86 crore shares, amounting to ₹3,000 crore. This allowed the company to strengthen its capital base while offering existing shareholders a chance to sell part of their holdings.
Lead Managers and Registrars of the Issue
Several leading financial institutions were involved in managing the IPO. Kotak Mahindra Capital Company Ltd, Axis Capital, BofA Securities India Ltd, Goldman Sachs (India) Securities, JM Financial, SBI Capital Markets, and IIFL Securities acted as the book running lead managers. Kfin Technologies served as the registrar for the issue.
Bajaj Housing Finance: A Leading Player in the Mortgage Lending Market
Bajaj Housing Finance Ltd. is the largest non-deposit-taking Housing Finance Company (HFC) promoted by Bajaj Finance Ltd. Since FY18, the company has been actively engaged in mortgage lending. As of the financial year ending in 2024, Bajaj Housing Finance had an asset under management (AUM) of ₹97,071 crore.
Strong Growth Potential for Bajaj Housing Finance
Bajaj Housing Finance has shown significant growth, with its AUM increasing at a compound annual growth rate (CAGR) of 30.9% between FY22 and FY24. Analysts believe that the company is in a strong position to capitalize on the growing demand in the housing finance sector and is well-placed for future growth.
Analysts Recommend Holding for Medium to Long-Term Gains
Given the strong demand for the IPO and the company’s market position, experts recommend that investors who were allocated shares should hold onto their investments for the medium to long term. Analysts expect Bajaj Housing Finance to continue delivering impressive growth as it benefits from favorable trends in the housing finance industry.
Conclusion
Bajaj Housing Finance’s spectacular stock market debut at a 114% premium highlights the confidence investors have in the company’s future prospects. With strong fundamentals and a growing market presence, Bajaj Housing Finance is set to become a key player in the housing finance sector, making it a stock to watch for the long term.
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