The much-awaited Rs 6,560 crore public issue of Bajaj Housing Finance Limited, one of India’s leading housing finance companies, will open for subscription today, September 9. On September 6, the company announced that it has raised Rs 1,758 crore from anchor investors prior to launching its first public share sale for subscription.
The highly anticipated Bajaj Housing Finance IPO will remain open for subscription till September 11. The price band for the Bajaj Housing Finance has been fixed at Rs 66-70 per share for the public offering. The public issues comprise a fresh issue of equity shares up Rs 3,560 crore and an offer for sale (OFS) of equity shares amounting to Rs 3,000 crore by parent company Bajaj Finance.
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Bajaj Housing Finance is the wholly-owned company of Bajaj Finance Ltd.
The Bajaj Housing Finance IPO has allocated up to 50 per cent of the shares in the public issue for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NII), and a minimum of 35 per cent of the offer is reserved for retail investors.
In addition, Bajaj Housing Finance has reserved shares worth Rs 500 crore under the shareholders’ quota. According to the company, this section is reserved for individuals and Hindu Undivided Families (HUFs) that own public stock in the company’s promoters.
In initial public offerings where the company’s parent companies are already listed on markets, a shareholder’s quota is usually provided. This is carried out as an exclusive perk to appease parent company shareholders.
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The company plans to use the proceeds from the IPO to augment the capital base to meet future capital requirements.
In addition, the public issue aims to comply with the Reserve Bank of India’s (RBI) directive, which mandates that upper-layer non-banking finance companies (NBFC) be listed on stock exchanges by September 2025. Aadhar Housing Finance and India Shelter Finance are two other housing finance companies that have gone public on the stock exchanges in recent months.
Bajaj Housing Finance IPO GMP
According to multiple platforms that track grey market premium (GMP) activities, the shares of Bajaj Housing Finance are commanding a GMP of Rs 50-51 per share, signalling a premium of over 70 per cent in the unregulated market.
