Bajaj Housing Finance IPO Day 2: GMP soars 92%; should you subscribe?

Shares of Bajaj Housing Finance were quoted trading at a premium of Rs 64 or 91.43 per cent in the grey market, indicating a positive market sentiment for the IPO

Bajaj Housing Finance IPO subscription status: The initial public offering (IPO) of Bajaj Housing Finance received an overwhelming response from investors on the first day of its opening, with investors bidding for 1,46,58,24,030 shares against 72,75,75,756 shares offered by the company. Thus, the issue got subscribed 2.01 times by the end of the first day of subscription, as per NSE data.

This was led by Non-Institutional Investors (NIIs) who bid 4.35 times for the Bajaj Housing Finance IPO, followed by Retail Individual Investors (RIIs) at 1.50 times and Qualified Institutional Buyers (QIBs) at 1.07 times by the end of Monday, September 9, 2024. Meanwhile, the quota reserved for shareholders witnessed 2.90 times subscription.

The public issue is available at a price band of Rs 66-70 and a lot size of 214 shares for investors. Thus, investors can bid for a minimum of 214 shares and in multiples thereof. Accordingly, the minimum amount required by a retail investor to bid for the Bajaj Housing Finance IPO is Rs 14,980.

Bajaj Housing Finance also garnered broadly positive reviews from brokerages, including Deven Chokshi Research, InCred Equities, Motilal Oswal, and Swastika Investmart, for the public issue. READ MORE

Meanwhile, the unlisted shares of Bajaj Housing Finance continue to trade at a strong premium in the grey market on Tuesday. As per sources that track grey market activities, shares of Bajaj Housing Finance were quoted trading at a grey market premium of Rs 64 or 91.43 per cent. This suggests a positive market sentiment for the Bajaj Housing Finance IPO.

The three-day subscription window to bid for the Bajaj Housing Finance IPO closes on Wednesday, September 11, 2024. Following this, the basis of allotment of Bajaj Housing Finance shares is expected to be finalised on Thursday, September 12, 2024, and subsequently, the company's shares will be credited into demat accounts on Friday, September 13, 2024.

Bajaj Housing Finance shares are expected to make their debut on the bourses on Monday, September 16, 2024. Bajaj Housing Finance shares will be listed on the BSE and NSE.

For the Bajaj Housing Finance IPO, KFin Technologies is the registrar, while Kotak Mahindra Capital, BofA Securities, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities are the book-running lead managers.