Day 3 of Bajaj Housing Finance IPO: Employee Subscription Slows, Grey Market Premium Insights
Bajaj Housing Finance’s initial public offering (IPO) has garnered significant attention from investors, reflecting a robust response as it enters its second day of subscription on September 10, 2024. The IPO, which opened on September 9, 2024, has already been oversubscribed by more than two times, indicating strong market interest.
Main Points
IPO Subscription Performance
As of September 10, the Bajaj Housing Finance IPO has achieved impressive subscription figures across various investor categories:
- Qualified Institutional Buyers (QIB): 1.07 times
- Non-Institutional Investors (NII): 5.59 times
- Retail Investors: 2.07 times
- Employees: 0.52 times
- Shareholders: 3.74 times
Overall, the total subscription stands at approximately 2.58 times the shares on offer.
Grey Market Premium (GMP)
In the grey market, Bajaj Housing Finance shares are trading at a premium of ₹64, which translates to a remarkable 91.43% increase over the upper price band of ₹70. This high GMP suggests that investors are optimistic about the stock’s performance post-listing, which is scheduled for September 16, 2024.
IPO Details
The IPO aims to raise ₹6,560 crore, with a price band set between ₹66 and ₹70 per share. Investors can apply for a minimum of one lot, which consists of 214 shares. The allotment of shares will be finalized on September 12, 2024.
Financial Health of Bajaj Housing Finance
Founded in 2008, Bajaj Housing Finance is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank since 2015. The company specializes in various mortgage products, including home loans, loans against property, and developer financing. As of March 2024, Bajaj Housing Finance reported a net profit of ₹1,731.22 crore, a significant increase from ₹1,257.8 crore in the previous fiscal year.
The company’s revenue also saw robust growth, reaching ₹7,617.71 crore, marking a compound annual growth rate (CAGR) of over 42%. The company serves over 308,000 active customers, with a substantial focus on home loans, which constitute approximately 81.7% of its portfolio. Its operations span across 215 branches in 20 states and three union territories, showcasing a strong market presence.
Market Outlook and Analyst Recommendations
Market analysts have expressed positive sentiments regarding the IPO, citing the company’s strong financial performance and the backing of the established Bajaj Group. Analysts recommend subscribing to the IPO, considering it a well-valued opportunity for both short-term gains and long-term investment. The company’s growth trajectory, driven by the increasing demand for housing finance in India, positions it favorably in the market.
Key Takeaways
- IPO Subscription Dates: September 9 to September 11, 2024
- Listing Date: September 16, 2024
- Price Band: ₹66 – ₹70 per share
- Lot Size: 214 shares
Investors are encouraged to consider the fundamentals of Bajaj Housing Finance, rather than solely relying on grey market signals, to make informed investment decisions
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.
