Investors are eagerly waiting for the listing of Bajaj Housing Finance shares, set for Monday, September 16, 2024, with excitement building as the date approaches.
After the share allotment was finalized recently, the discussion has intensified. The unlisted shares are currently trading at a premium of around Rs 75, representing a whopping 107% gain over the IPO issue price. This metric is a strong indicator of bullish sentiment around the listing.
Although the latest GMP is slightly lower than Rs 75 when the allotment is finalised, it is well above the level of Rs 64 seen when the IPO opens on September 9, 2024. This indicates a sustained rise, which is good news for potential investors.
If this momentum remains steady, the shares could start at around Rs 145 on BSE and NSE, which would double the investment for those who are on the ground floor. The expected gain of Rs 75 per share would be a financial win and reaffirming the market’s confidence in Bajaj Housing Finance.
Shivani Nyati, Head of Wealth at Swastika Investments, noted the unprecedented investor enthusiasm, evidenced by the subscription rate of 67.4x and the handsome gray market premium. Nyati attributes this enthusiasm to Bajaj Housing Finance’s strong financial performance, steady revenue and profit growth and the strong support of the prestigious Bajaj Group. This combination shows reliability and promise.
He said that the valuation of the IPO has been considered fair, which has boosted optimism and accelerated the discussion.
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“With strong financial metrics, the strength of a trusted brand and investor enthusiasm, Bajaj Housing Finance is potentially setting the stage for a blockbuster listing,” Nyathi said, pointing to an impressive market entry. Bajaj Housing Finance Limited (BHFL), a niche player in the mortgage lending sector since FY18, operates as a non-deposit-taking housing finance company (HFC).
After being granted ‘Upper Layer’ Non-Banking Financial Company (NBFC-UL) status by the Reserve Bank of India (RBI) on September 30, 2022, BHFL will be subject to ‘Scale Based Regulation (SBR): A Revised Regulatory Framework for NBFCs’ Belongs to, which was launched in October 2021.
The company offers various customized financial solutions to individuals and corporate entities, covering everything from home purchase and renovation to the development of residential and commercial properties. With rising investor sentiment and optimism in the grey market, Bajaj Housing Finance is set for a spectacular entry into the stock exchanges.
The combination of its strong financial position, strategic brand positioning and strong investor demand paints a picture of an IPO that is not only noteworthy but also potentially game-changing.
As listing day approaches, the market is buzzing, and investors are on the edge of their seats, ready for a defining moment, a moment that promises to not only meet high expectations but , but possibly even surpass that, setting the stage for an exciting market debut that could redefine success in the IPO landscape.
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