Bajaj Housing Finance IPO Subscription Tops 1% of India GDP, Set to Double on Listing
The initial public offering (IPO) of Bajaj Housing Finance, a subsidiary of Bajaj Finance, has created history by receiving bids worth over ₹3.24 lakh crore, which is more than 1% of India’s GDP. The IPO, which aimed to raise ₹6,560 crore, was oversubscribed by a staggering 63.61 times, making it the highest-ever bids received for any IPO in India.
The IPO received an overwhelming response from all categories of investors, including qualified institutional buyers (QIBs), non-institutional investors, retail investors, and eligible shareholders of Bajaj Finance and Bajaj Finserv. The quota reserved for QIBs was subscribed 209.36 times, while the non-institutional investor portion was subscribed 41.50 times. Retail investors and eligible shareholders also showed strong interest, with their portions being subscribed 7.02 times and 2 times, respectively.
The success of the IPO can be attributed to Bajaj Housing Finance’s strong parentage, sound business model, and growth potential. As a wholly-owned subsidiary of Bajaj Finance, one of India’s largest NBFCs, Bajaj Housing Finance has established itself as the second-largest housing finance company in India based on assets under management (AUM).
The company offers a diverse portfolio of financial solutions, including home loans, loans against property, lease rental discounting, and developer financing. Its AUM stood at ₹97,071 crore as of Q1FY25 end, up 31% sequentially, with a net profit of ₹483 crore during the same period, up 5% on quarter.
The IPO is set to make a robust debut on Dalal Street on September 16, with analysts expecting the shares to more than double investors’ wealth on listing. Data from IPO Premium suggests that Bajaj Housing Finance’s post-issue market capitalization stands at ₹58,297 crore, and if it rallies 100% or more, as indicated by the grey market premium, the company’s market valuation could surpass ₹1 lakh crore on the listing day itself.
This would make Bajaj Housing Finance one of the most valuable companies in the country, with a market cap comparable to that of Colgate-Palmolive (₹99,536 crore) and other giants like Apollo Hospitals Enterprise, Info Edge (India), and Jindal Steel & Power.
The IPO proceeds will be used to strengthen Bajaj Housing Finance’s capital base and meet future capital requirements. The issue also complies with the Reserve Bank of India’s (RBI) regulations, which mandate upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.
The success of the Bajaj Housing Finance IPO has not been without its challenges, however. Some investors, especially those operating through banking and discount brokerages, faced delays in receiving UPI mandates due to the sheer volume of applications. Despite this, the applications were considered at par irrespective of the time at which the mandate was approved.
As the allotment process for the IPO is underway, investors are eagerly awaiting the results to see if they have been allocated shares. Analysts believe that retail investors have the best chance of getting allotment, while shareholders who applied for the maximum number of lots (13) in the eligible category are also well-positioned.
As the nation eagerly awaits the listing of Bajaj Housing Finance, it is clear that this IPO has not only captured the imagination of investors but has also set a new standard for future offerings in the Indian market.
