Bajaj Housing Finance shares made a strong debut on the stock market on September 16, listing at a significant premium of 114%. The shares were listed at ₹150 per share on the National Stock Exchange (NSE), compared to the issue price of ₹70.
Similarly, on the Bombay Stock Exchange (BSE), the stock opened at ₹150, maintaining the same 114% premium. This market debut exceeded expectations, signalling strong investor confidence.
Initial public offering (IPO) details
Bajaj Housing Finance’s initial public offering (IPO) was open for bidding between September 9 and 11. The company offered its shares in the price range of ₹66-₹70 per share, with a lot size of 214 shares. The IPO raised ₹6,560 crore through a combination of a fresh share sale of ₹3,560 crore and an offer for sale (OFS) worth ₹3,000 crore by Bajaj Finance.
The overwhelming response to the IPO highlighted investor confidence, especially for those seeking to invest in IPO opportunities in the financial sector.
Grey market premium (GMP) performance
Ahead of its listing, Bajaj Housing Finance shares were commanding a grey market premium (GMP) of ₹73-₹75 per share, suggesting an expected listing gain of 104-105%. The grey market, an unofficial market where shares are traded before being listed on an exchange, often serves as an indicator of investor sentiment. As the stock debuted at ₹150, representing a 114% premium, the actual listing price slightly exceeded grey market expectations.
For those planning to invest in an IPO, tracking grey market premiums can provide valuable insights into market sentiment and potential listing gains.
Impressive investor interest
Bajaj Housing Finance’s IPO attracted bids worth ₹3 lakh crore, making it the first Indian IPO to achieve such a milestone. A total of 46.28 billion equity shares were bid for, amounting to ₹3.24 lakh crore. The portion reserved for qualified institutional buyers (QIBs) was oversubscribed 209.36 times, while the quota for non-institutional investors was subscribed 41.51 times. Retail investors also showed considerable interest, with their portion being oversubscribed 7.04 times.
The solid demand for Bajaj Housing Finance shares reflects the company’s strong market standing and the growing appeal of housing finance companies. Investors who opted to invest in IPO benefitted from significant gains on listing day, as the stock performed better than expected.
Broker recommendations
Brokerage firms were generally positive about the Bajaj Housing Finance IPO, with many advising investors to subscribe to the issue. Analysts cited the company’s strong market presence, solid financial performance, and growth potential as reasons for their recommendations.
BofA Securities India, Axis Capital, Kotak Mahindra Capital Company, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial, and IIFL Securities served as the book-running lead managers for the IPO. At the same time, Kfin Technologies acted as the registrar. The positive sentiment surrounding the IPO was a key factor in its oversubscription and strong listing day performance.
IPO performance
Bajaj Housing Finance’s listing performance was particularly impressive, with shares debuting at ₹150, a 114% premium over the issue price of ₹70. This exceeded grey market expectations, where shares were commanding a premium of ₹73-₹75. The stock’s robust debut reflects strong investor demand and confidence in the company’s growth prospects.
The positive market response to Bajaj Housing Finance’s shares highlights the potential rewards for investors who choose to invest in IPO opportunities with established, financially strong companies. The financial sector, particularly housing finance, continues to attract significant interest from investors looking for long-term growth opportunities.
Key takeaways
Bajaj Housing Finance’s shares made a stellar debut on Dalal Street, listing at a 114% premium over the issue price. The company’s IPO attracted significant demand from investors, with the issue being oversubscribed multiple times across various investor categories. For those looking to invest in an IPO, the strong market debut of Bajaj Housing Finance shares demonstrates the potential for substantial returns when investing in financially sound and growth-oriented companies.
The funds raised through the IPO will be used to strengthen Bajaj Housing Finance’s balance sheet, reduce debt, and support its future growth plans.
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