Bajaj Housing Finance IPO booked 8x on Day 2. Check expected listing gains

The Bajaj Housing Finance IPO has actually recorded the spotlight of the mainboard IPO market with a buzz that’ s hard to overlook. On its 2nd day of bidding, the general public concern has actually seen continued strong interest from financiers, stimulating a flurry of activity.

The IPO, which opened on Monday, saw its membership more than two times on the very first day. Since newest information for the 2nd day, the IPO was subscribed 8.01 times in general.

The IPO was subscribed 4.14 times in the retail classification, 7.91 times in the Qualified Institutional Buyers (QIB) classification, 17.50 times in the Non-Institutional Investors (NII) classification since September 10, 2024, 5:41 PM.

What is anticipated noting gain for Bajaj Housing Finance IPO?

The high need has actually increased the anticipated listing gains, with the grey market premium (GMP) for Bajaj Housing Finance’ s IPO presently standing at Rs 65.

Provided the rate band of Rs 66-70, the anticipated listing rate is around Rs 135, recommending an expected gain of 92.86% per share.

Bajaj Housing Finance is using its shares in the cost series of Rs 66-70 each. Financiers can obtain a minimum of 214 shares and in multiples afterwards. The business intends to raise Rs 6,560 crore through this IPO, with Rs 3,560 crore originating from a fresh share concern and Rs 3,000 crore from an offer-for-sale (OFS) by Bajaj Finance.

The IPO’ s three-day bidding duration will end on Wednesday, September 11.

Established in 2008, Bajaj Housing Finance is a non-deposit-taking real estate financing business signed up with the National Housing Bank (NHB) because 2015. It has actually been offering home loan given that the fiscal year 2018 and belongs to the varied Bajaj Group.

Brokerages see the IPO favorably. They advise subscribing for the long term due to the business’ s strong parentage, strong market position, growing properties under management (AUM), sensible expense of funds, and strong development capacity. Issues consist of property concentration and direct exposure to the genuine estate sector.

Ahead of the IPO, Bajaj Housing Finance raised Rs 1,758 crore from anchor financiers by assigning 25,11,42,856 equity shares at Rs 70 each. For the quarter ended June 30, 2024, the business reported a net revenue of Rs 482.61 crore and income of Rs 2,208.73 crore. For FY23, the net revenue was Rs 1,731.22 crore on income of Rs 7,617.71 crore.

As the biggest non-deposit-taking real estate financing business in India, Bajaj Housing Finance prepares to enhance its market position with tactical concentrate on consumer requirements and run the risk of management. The business intends to utilize innovation and analytics to improve efficiency and lower expenses.

The book running lead supervisors for the IPO consist of Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities.

Kfin Technologies is the registrar for the concern. Shares are anticipated to be noted on both BSE and NSE on September 16, 2024.