Bajaj Housing Finance IPO was fully subscribed within 4 hours of opening. The Bajaj group public issue is seen as an attractive opportunity in the housing finance sector, a segment that has been gaining momentum.
Bajaj Housing Finance IPO has received bids for 146.58 crore shares, resulting in a 2.01 times subscription at the end of day 1 of bidding.
Bajaj Housing Finance’s much-awaited initial public offering (IPO) enters the second day of subscription today (10 September) after a bumper response from investors on the first day of bidding. The Rs 6,560-crore issue got fully subscribed within just four hours of opening on Monday, and was oversubscribed by 100 percent by the end of the day, tracking high demand for the shares.
The strong investor interest is also reflected in a further sharp rise in the grey market premium (GMP) for Bajaj Housing Finance shares. The Bajaj group IPO is seen as an attractive opportunity in the housing finance sector, a segment that has been gaining momentum amid rising real estate demand and increasing home loan penetration.
Bajaj Housing Finance IPO subscription update
Bajaj Housing Finance public issue has received bids for 146.58 crore shares against 72.75 crore shares on offer, resulting in a 2.01 times subscription at the end of day 1 of bidding.
The portion meant for non-institutional investors fetched 4.35 times subscription while the quota for Retail Individual Investors (RIIs) got subscribed 1.5 times. The category for Qualified Institutional Buyers (QIBs) was also fully booked by the end of the day, receiving 1.07 times subscription.
Earlier, on Friday, Bajaj Housing Finance collected Rs 1,758 crore from anchor investors. The initial share sale with a price band fixed at Rs 66-70 per share will conclude tomorrow on 11 September.
Bajaj Housing Finance IPO GMP rising
The GMP for Bajaj Housing Finance has jumped further, indicating the high demand for the stock even before its official listing. Currently, the GMP stands at Rs 55, reflecting nearly 80 percent premium on the issue price. The strong GMP signals potentially strong listing gains for investors once the stock debuts on the exchanges.
Atul Jain, MD, Bajaj Housing Finance told CNBC-TV18 that the company is growing at a CAGR Of 31 percent on loans since the last 3 years. “Compared to the market, we are relatively smaller in size. Given our relative size, we have a reasonable path and highway to grow. We want to diversify our loan book.”
Bajaj Housing Finance IPO: Should you subscribe?
Master Capital Services Ltd said the company’s omni-channel sourcing strategy, strong geographic presence, and distribution reach enable it to acquire a large volume of customers every year. Further, it plans to optimise its borrowing costs by diversifying its borrowing profile. “The company also intends to leverage technology and analytics to enhance productivity, reduce expenses, improve customer experience, and manage risks. Investors looking to invest can invest in the IPO for the medium to long term,” it said.
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