Bajaj Housing Finance IPO Oversubscribed Across Investor Segments

Bajaj Housing Finance Limited launched its initial public offering (IPO) on September 9, 2024. The company aimed to raise ₹6,560 crore, and the issue closed on September 11, 2024. The IPO was set with a price band between ₹66-70 per share.

The IPO witnessed immense interest, culminating in a subscription of 63.55 times by the end of the third day. Qualified institutional buyers (QIBs) showed the highest interest, with subscriptions reaching 209.36 times the allotted shares. Non-institutional investors (NIIs) and retail individual investors (RIIs) also showed significant interest, subscribing 41.44 times and 6.95 times, respectively.

The IPO consists of a fresh issue of 50.86 crore shares, aggregating to ₹3,560 crore, and an offer for sale of 42.86 crore shares, totaling ₹3,000 crore. Bajaj Housing Finance plans to use the proceeds to strengthen its capital base, which will support future lending operations.

Bajaj Housing Finance’s assets under management (AUM) climbed to ₹97,100 crore by Q1FY25, marking a compound annual growth rate (CAGR) of 30.9% from FY22 to FY24. This growth rate positions it as the fourth fastest-growing non-banking financial company (NBFC) in the upper-layer category as classified by the Reserve Bank of India (RBI).

The allotment for the IPO is expected to be finalized on September 12, 2024, and trading is anticipated to commence on BSE and NSE on September 16, 2024. Analysts have noted the company’s strong asset management and risk management frameworks, supporting the premium valuation of the IPO.

Bajaj Housing Finance Limited benefits from its association with Bajaj Finance Ltd., having established itself as a non-deposit-taking housing finance company since 2015. The company is renowned for offering diverse mortgage finance solutions, primarily targeting upper-end homebuyers and large-scale developers across India.