oday marks a pivotal moment as the much-anticipated initial public offering (IPO) of Bajaj Housing Finance, India’s second-largest housing finance powerhouse and a wholly-owned arm of Bajaj Finance, swings open its doors to eager investors.
The buzz is undeniable, fueled by the company’s recent success in securing a hefty Rs 1,758 crore from anchor investors, a feat wrapped up on Friday, September 6, 2024.
The excitement doesn’t stop there. On the very first day of trading, Bajaj Housing Finance shares are setting the grey market alight, commanding a robust premium.
Grey market whispers reveal the shares are trading at a striking Rs 56.70 premium, soaring 81% above the expected issue price, a clear signal of the market’s fervent sentiment toward this IPO.
As the IPO kicks off, investment heavyweights like Deven Chokshi Research, InCred Equities, Motilal Oswal, and Swastika Investmart are already weighing in, offering their insights on this promising public issue. But before diving into the analyst calls, let’s unravel the core details of this high-stakes IPO.
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Key Highlights of Bajaj Housing Finance IPO
At the higher end of the price spectrum, Bajaj Housing Finance aims to rake in a substantial Rs 6,560 crore. The IPO comprises a fresh issuance of 937,142,858 shares, amounting to around Rs 6,560 crore, alongside an offer for sale by Bajaj Finance, the parent entity, shedding up to 508,571,429 shares, each holding a face value of Rs 10.
Priced within a band of Rs 66-70, the public issue offers a lot size of 214 shares, meaning investors need to shell out a minimum of Rs 14,980 to make a bid, and they can only do so in multiples of this lot size.
KFin Technologies has taken the helm as the registrar for this IPO, with a powerhouse syndicate of book-running lead managers including Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities steering the ship.
The company’s game plan? To channel the net proceeds from the fresh issue into bolstering its capital reserves, setting the stage for future growth initiatives like onward lending.
Beyond the financial boost, Bajaj Housing Finance is eyeing a strategic win from listing its shares on the stock exchanges, a move aimed at amplifying its brand presence and carving out a vibrant public market for its equity shares within India.
A chunk of the funds raised will also go toward covering IPO-related expenses, as outlined in the Red Herring Prospectus (RHP).
A Tight Timeline: What’s Next for Investors?
Investors have a narrow window just three days to stake their claims in the Bajaj Housing Finance IPO, with bidding concluding on Wednesday, September 11, 2024. Post-subscription, the allotment process is set to unfold swiftly, likely by Thursday, September 12, 2024, with the shares expected to hit demat accounts by Friday, September 13, 2024.
Mark your calendars: Bajaj Housing Finance is gearing up for its big market debut on Monday, September 16, 2024. The shares will make their grand entrance on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), adding a fresh chapter to India’s dynamic housing finance landscape.
This IPO isn’t just a chance to own a piece of Bajaj Housing Finance; it’s a high-stakes play in one of India’s most vibrant financial sectors. As the clock ticks and the market watches, all eyes are set on what could be one of the most talked-about IPOs of the year.
