Bajaj Housing Finance IPO: Investors Anticipate Record Listing Gains as Shares Set to Debut on September 16

excitement is building in the financial markets as Bajaj Housing Finance prepares for its stock market debut on September 16. The company’s initial public offering (IPO) has generated unprecedented interest, with bids exceeding ₹3 lakh crore, making it the most subscribed IPO in Indian history. This remarkable response reflects the strong demand for housing finance stocks and the overall bullish sentiment in the market.

IPO Highlights

Bajaj Housing Finance’s IPO, which concluded on September 11, raised ₹6,560 crore. The offering was priced between ₹66 and ₹70 per share, and it attracted almost 9 million applications, surpassing the previous record held by Tata Technologies. The overwhelming demand resulted in the IPO being subscribed 67.4 times, with institutional investors showing particularly strong interest, subscribing 222 times their allotted shares. Retail investors also participated actively, with their portion subscribed over 7 times.

The grey market premium (GMP) for Bajaj Housing Finance shares currently stands at approximately ₹76.50, indicating that investors could see listing gains of around 110% on the debut day. Analysts predict that the shares might list at around ₹146.50, significantly higher than the issue price, which is a positive sign for those who received allotments.

Market Sentiment and Growth Prospects

The strong performance of Bajaj Housing Finance’s IPO is attributed to several factors. First, the company is part of the reputable Bajaj Group, which has a solid track record in the financial sector. Second, the housing finance market in India is poised for growth, driven by increasing urbanization and government initiatives aimed at providing affordable housing. The Pradhan Mantri Awas Yojana (PMAY) aims to build 3 crore additional houses, which bodes well for housing finance companies.

Moreover, the net interest margins for housing finance companies are expected to improve, with estimates suggesting a rise from 3.2% in fiscal 2024 to 3.3% in fiscal 2025. This improvement is anticipated due to a potential decline in repo rates, which would lower borrowing costs for these companies. Analysts are optimistic about the long-term outlook for Bajaj Housing Finance, given its robust financial performance, which includes a 50.4% increase in revenue for FY 2023 and a 77.2% rise in net profit.

Investor Interest and Market Dynamics

The massive interest in Bajaj Housing Finance’s IPO is not just a one-off event. It reflects a broader trend in the housing finance sector, where companies are increasingly viewed as attractive investment opportunities. The overall subscription amount for the IPO exceeded 1% of India’s nominal GDP, highlighting the significant investor appetite for shares in this sector.

Brokerages have been largely positive about the IPO, with many recommending it as a lucrative investment. They cite the company’s strong fundamentals, including its consistent growth in revenue and profitability, as key reasons to consider investing in Bajaj Housing Finance. The company’s focus on individual retail housing loans, supported by a diverse range of commercial and developer loans, positions it well to capitalize on the growing demand for housing finance.

Checking Allotment Status

For those who applied for the Bajaj Housing Finance IPO, the allotment process has been finalized. Successful applicants will receive notifications, and shares will be credited to their demat accounts shortly. Investors can check their allotment status on the BSE or KFin Technologies websites.