The Bajaj Housing Finance IPO, which closed for subscription on Wednesday, September 11, 2024, received an impressive 8.9 million applications, breaking the previous record of 7.35 million held by Tata Technologies. The IPO allotment was finalized yesterday.
The unlisted shares of Bajaj Housing Finance are currently trading at a premium of around Rs 75, which is 107% higher than the IPO issue price.
Investors are eagerly waiting for Bajaj Housing Finance shares to list on the stock exchanges on Monday, September 16, 2024. The grey market premium (GMP) of the IPO remains over 100%, driven by strong demand from investors. This high GMP shows the strong interest and excitement among investors, suggesting the shares may perform well after listing.
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According to grey market sources, Bajaj Housing Finance’s unlisted shares are currently trading at a premium of around Rs 75, reflecting a 107% increase over the IPO issue price. This suggests strong interest in the company’s shares ahead of the listing. Although today’s grey market premium is slightly lower than yesterday’s Rs 75 when the allotment was finalized, it is still much higher than the Rs 64 premium reported on September 9, 2024, the IPO’s opening day, showing a rise of more than Rs 10.
If the current grey market trend continues until Monday, Bajaj Housing Finance IPO shares could offer investors a significant return, potentially doubling their investment on the first day. The expected listing price is around Rs 145 on the BSE and NSE, based on the current grey market premium (GMP), which means investors could see a gain of about Rs 75 per share.
The highly anticipated public offering of Bajaj Finance’s housing finance arm received positive feedback from several brokerages, including Deven Choksey Research, InCred Equities, Motilal Oswal, and Swastika Investmart, for its IPO.
Bajaj Housing Finance IPO
a housing finance company, has been focused on mortgage lending since FY18. Since September 30, 2022, the Reserve Bank of India (RBI) has classified BHFL as an ‘Upper Layer’ Non-Banking Financial Company (NBFC-UL). It operates under the ‘Scale Based Regulations’ introduced on October 22, 2021. BHFL offers tailored financial solutions to both individuals and businesses for buying, renovating, and developing residential and commercial properties.
Shivani Nyati, Head of Wealth at Swastika Investmart, pointed out that the IPO has attracted huge interest from investors, with a subscription rate of 67.4 times and a high grey market premium. She believes this excitement reflects the company’s strong financial performance and market expectations. Bajaj Housing Finance has shown steady growth in both revenue and profit, backed by solid financials. Its connection to the trusted Bajaj Group adds to investor confidence, and the IPO’s reasonable valuation has further boosted optimism.
She added that the mix of strong financials, a well-known brand, and high investor interest sets Bajaj Housing Finance up for a likely successful listing.