Bajaj Housing Finance IPO Allotment: A Historic Subscription Surpassing ₹3 Lakh Crore
Marks a significant milestone in the Indian financial market with the allotment of shares for the Bajaj Housing Finance IPO. This initial public offering (IPO) has set a record by receiving an overwhelming subscription of over ₹3 lakh crore, making it the most subscribed IPO in Indian history. Investors are eagerly awaiting the allotment results after a three-day bidding period that concluded on September 11.
Main Points
Record-Breaking Subscription
The Bajaj Housing Finance IPO was open for bidding from September 9 to September 11, 2024. The company offered shares in a fixed price band of ₹66 to ₹70 per share, with a minimum lot size of 214 shares. The total issue size was ₹6,560 crore, which included a fresh issue of equity shares worth ₹3,560 crore and an offer for sale (OFS) of ₹3,000 crore by its parent company, Bajaj Finance.
The response from investors was historic. The IPO was subscribed a staggering 63.61 times overall, with bids for over 4,628 crore shares against the 72.75 crore shares on offer. This massive interest was seen across various categories of investors:
- Qualified Institutional Buyers (QIBs): Subscribed over 209 times.
- Non-Institutional Investors: Subscribed 41.51 times.
- Retail Individual Investors (RIIs): Subscribed over 7 times.
This level of subscription is unprecedented, surpassing the previous records held by Coal India Ltd and Mundra Port, which had seen subscriptions of over ₹2 lakh crore.
How to Check Allotment Status
Investors who participated in the Bajaj Housing Finance IPO can check their allotment status through the official websites of the registrar, KFin Technologies, or the Bombay Stock Exchange (BSE). Here’s a step-by-step guide:
On KFin Technologies
- Visit the KFin Technologies IPO status page.
- Select “Bajaj Housing Finance” from the dropdown menu.
- Enter your PAN, application number, or Demat account ID.
- Click “Submit” to view your allotment status.
On BSE
- Go to the BSE website.
- Click on the “Investors” option.
- Navigate to “Status of Issue Application.”
- Select “Application Status Check.”
- Choose “Equity” as the issue type and fill in your details.
- Click “Search” to see your status.
Investors can expect to receive notifications regarding the debit of funds or revocation of their IPO mandate by Friday or over the weekend.
Grey Market Premium (GMP)
The grey market premium (GMP) for Bajaj Housing Finance shares has also seen a remarkable rise. As of today, the GMP is reported to be around ₹72 to ₹75, indicating a potential listing gain of approximately 104% for investors. This strong demand reflects the market’s confidence in the company’s future performance.
Future Prospects
Bajaj Housing Finance, incorporated in 2008, is a non-deposit-taking housing finance company registered with the National Housing Bank (NHB). It is part of the diversified Bajaj Group, which has interests in various sectors. The funds raised from this IPO will be utilized to strengthen the company’s capital base and meet future capital requirements, aligning with the Reserve Bank of India’s (RBI) mandate for non-banking financial companies to be listed by September 2025.
Brokerages have expressed a positive outlook on the IPO, recommending it for long-term investment. They cite the company’s strong market share, rising assets under management (AUM), and reasonable cost of funds as key factors contributing to its growth potential. However, some analysts have pointed out concerns regarding asset concentration and exposure to the real estate sector.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
