Bajaj Housing Finance’s maiden share sale is taking the market by storm, breaking all records with a massive surge in bids as the ₹6,560 crore offering fetches a total value of over ₹3.2 trillion. The IPO not only met expectations but demolished them, receiving an extraordinary 9 million applications, surpassing the previous benchmark set by Tata Technologies, which received 7.35 million bids.
This tremendous response is not just another footnote in the Indian IPO story; it is a seismic shift, a testament to the magnetic pull of the Bajaj brand.
Analysts suggest the success underlines the strength and immense potential of India’s $5.5 trillion domestic equity market, which has shown its strength in accommodating large-scale share sales.
The achievement comes on the eve of two other much-awaited IPOs: Hyundai’s India division, which is expected to raise Rs 25,000 crore, and SoftBank-backed Swiggy, which has an estimated issue size of over Rs 10,000 crore.
Bajaj Housing’s IPO was in high demand across investor sectors, with total interest exceeding 67 times the available shares.
Institutional investors alone oversubscribed 222 times, while high net worth individuals placed bids 51 times for shares up to Rs 10 lakh and 31 times for shares above Rs 10 lakh. The flood of bids from individual investors crossed Rs 60,000 crore.
The excitement revolving around Bajaj Housing Finance is reminiscent of the frenzy around the time of Tata Technologies’ market entry in November 2023. It was a historic event, as it was the Tata Group’s first IPO in almost two decades. Tata Technologies’ IPO received an astonishing ₹2 trillion in bids and the share price surged 2.65 times on its first day.
Now, in a parallel story, shares of Bajaj Housing – often called the ‘HDFC of the future’ – are expected to more than double when trading begins on Monday.
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Such a surge could push the company’s valuation to a staggering ₹1.2 trillion, potentially making it India’s most valuable non-deposit-taking housing finance company (HFC), which LIC Housing Finance currently holds. Is owned by , which is worth ₹37,151 crore.
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At the upper end of the ₹66-70 valuation range, Bajaj Finance’s wholly-owned Bajaj Housing is valued at ₹58,000 crore. Suresh Ganapathy, managing director and head of financial services research at Macquarie, conducted a detailed review, noting that the valuations range across the spectrum.
At the high end, Bajaj Housing Finance is priced at 2.6 times its estimated book value on a post-dilution basis for FY26, with a return on assets of 2.5%. Further, his analysis pointed to a worrying trend: the company’s return on equity is expected to decline from 15% to 12% after the IPO, which raised fresh capital of ₹3,560 crore.
To put this in perspective, former industry giant HDFC once enjoyed valuations close to 4 times its book value at its peak.
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