Bajaj Housing IPO GMP rockets 100% on last day; should you park your funds?

Bajaj Housing Finance IPO GMP soars: The unlisted shares of Bajaj Housing Finance continue to maintain a robust grey market premium on the final day of its IPO bidding, underscoring strong investor appetite. The shares are trading at a premium of Rs 70, a 100 per cent premium over the IPO's upper price band of Rs 70, as per sources tracking grey market activities. Moreover, today's grey market premium has risen by Rs 7, from Rs 64 on Monday, September 9, 2024, when the IPO subscription opened, indicating sustained momentum.
 

The Bajaj Housing Finance IPO, which ends today, has so far received an overwhelming response from investors, with the public issue being subscribed 7.50 times by the second day of subscription. According to NSE data, the public issue of Bajaj Housing Finance received bids for 5,45,85,77,822 shares against 72,75,75,756 shares offered. 

Non-Institutional Investors (NIIs) bid the highest at 16.45 times for the Bajaj Housing Finance IPO, followed by Qualified Institutional Buyers (QIBs) at 7.46 times and Retail Individual Investors (RIIs) at 3.83 times. Meanwhile, the quota reserved for shareholders received 9.54 times subscription by Tuesday, September 10, 2024.

The public issue of Bajaj Housing Finance has received positive reviews from several noted brokerages, including Deven Chokshi Research, InCred Equities, Motilal Oswal, and Swastika Investmart. READ MORE

Bajaj Housing Finance IPO details

At the upper end, Bajaj Housing Finance seeks to raise Rs 6,560 crore from the issue, offering a fresh issue of 937,142,858 shares worth around Rs 6,560 crore, as well as an offer for sale of up to 508,571,429 shares of the company with a face value of Rs 10 apiece.

The Bajaj Housing Finance IPO is available at a price band of Rs 66-70 with a lot size of 214 shares. Accordingly, investors can bid for a minimum of 214 shares and in multiples thereof.

KFin Technologies is the registrar for the Bajaj Housing Finance IPO, 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 of the public issue.

Following the closure of the subscription window, the allotment of Bajaj Housing Finance IPO shares is likely to be finalised on Thursday, September 12, 2024, and the company's shares will be credited to demat accounts on Friday, September 13, 2024.

Bajaj Housing Finance

Bajaj Housing Finance Ltd (BHFL), formerly known as Bajaj Financial Solutions Ltd, was incorporated as a subsidiary of Bajaj Finserv Ltd (BFS) on June 13, 2008. The company was acquired by Bajaj Finance Ltd (BFL) as a wholly-owned subsidiary from Bajaj Finserv on November 1, 2014, with the intent to conduct housing finance business through a dedicated subsidiary. The company's name was changed to Bajaj Housing Finance on November 14, 2014.