Bajaj Housing Finance has made history by receiving bids worth Rs 3.2 lakh crore, surpassing all previous IPO records in the Indian market. The company’s IPO, which aimed to raise Rs 6,560 crore, has attracted overwhelming investor interest, especially from non-institutional investors.
Bajaj Housing Finance IPO Shatters Records
Massive Investor Demand
The IPO of Bajaj Housing Finance was subscribed 63.6 times, fueled by strong interest from non-institutional investors. This category alone was subscribed more than 200 times, showcasing the immense demand.
Comparison to Previous Records
The previous record was held by Tata Technologies, whose Rs 3,000 crore IPO received bids worth Rs 1.5 lakh crore. Bajaj Housing Finance has now more than doubled that figure.
Grey Market Premium and Anchor Investments
Grey Market Performance
In line with the overwhelming IPO demand, Bajaj Housing Finance’s shares are trading at a premium of Rs 67-69 in the grey market, representing a 96% premium over the issue price.
Anchor Investors Participation
Ahead of the IPO opening, Bajaj Housing Finance raised Rs 1,758 crore from marquee anchor investors such as JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund.
IPO Details and Utilization of Funds
Fundraising and Subscription Details
Bajaj Housing Finance sought to raise Rs 6,560 crore through a mix of fresh equity and an offer-for-sale (OFS). The proceeds will be used to bolster the company’s capital base for future lending and business growth.
Other Competing IPOs
Despite competing with three other IPOs in the market—Kross, Tolins, and PN Gadgil—Bajaj Housing Finance stood out, attracting record-breaking bids.
Company Overview and Financial Performance
Company Background
Bajaj Housing Finance, a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank since September 2015, offers a variety of financial products, including home loans, loans against property, and developer financing.
Upper-Layer NBFC Status
Recognized as an upper-layer NBFC by the RBI, Bajaj Housing Finance provides mortgage solutions for residential and commercial properties, serving customers ranging from individual homebuyers to large developers.
FY24 Financial Performance
In the fiscal year 2023-24, Bajaj Housing Finance posted a net profit of Rs 1,731 crore, marking a 38% increase from Rs 1,258 crore in FY23. The company’s net income rose 34% year-on-year to Rs 7,618 crore.
With record-breaking bids and strong market interest, Bajaj Housing Finance’s IPO has set a new benchmark in the Indian capital market. The company’s robust financials and future growth potential make it a promising player in the housing finance sector.
Tags: Bajaj Housing Finance IPO, record-breaking IPO, Indian IPOs 2024, non-institutional investors, grey market premium, housing finance IPO, NBFC IPO
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