The initial public offering (IPO) of Bajaj Housing Finance Limited (BHFL) has made a notable debut on the Indian stock market this week. If you’re considering investing in this IPO, what you need to know.
Bajaj Housing Finance, a prominent player in the housing finance sector, has launched its IPO, which opened for public subscription on Monday. The offering will remain open until Wednesday, 11th September 2024. The company has set the price band for the shares between ₹66 and ₹70 per share.
Subscription Status:
As of the second day of bidding, the IPO has received a strong response from investors. According to data from the Bombay Stock Exchange (BSE), the IPO was subscribed 3.00 times. This means that the number of shares investors have applied for is three times the number of shares available.
Here’s a breakdown of the subscription status:
- Retail Portion: The part of the IPO meant for individual investors was subscribed 2.35 times.
- Non-Institutional Investors (NII): This segment, which includes high-net-worth individuals and other non-institutional entities, was subscribed 6.74 times.
- Qualified Institutional Buyers (QIB): This category, which includes large institutional investors, was subscribed 1.08 times.
The grey market premium (GMP) is an important indicator of investor interest before the official listing of the shares. As of today, the GMP for the Bajaj Housing Finance IPO is ₹59. This is an increase from ₹55 reported earlier. The GMP reflects the difference between the expected listing price and the current trading price in the grey market. A higher GMP suggests strong investor enthusiasm and potential for good returns when the shares start trading on the stock exchange.
Offer Details:
The IPO includes:
- Offer for Sale (OFS): Equity shares worth ₹3,000 crore are being offered for sale by Bajaj Finance, the parent company of Bajaj Housing Finance.
- New Issue: An additional issue of equity shares worth up to ₹3,560 crore.
The purpose of this share offering is to comply with the Reserve Bank of India’s (RBI) directive. The RBI has instructed higher layer non-banking financial companies (NBFCs) to list on stock exchanges by September 2025. This move aims to enhance transparency and provide better access to capital for these financial institutions.
The Bajaj Housing Finance IPO is generating significant buzz, with strong demand from various investor segments and a positive GMP. However, as with any investment, it’s essential to conduct thorough research or consult with a financial advisor to ensure it aligns with your investment goals and risk tolerance.
