Bajaj Housing Finance IPO: Bajaj Group's non-deposit NBFC Bajaj Housing Finance's IPO got a great response from investors. On the very first day of opening of the issue, the portion reserved for every category in the IPO except employees was fully filled, while even in two days the quota for employees was not fully filled. On the last day, the employees' portion was oversubscribed. Overall, this issue was subscribed 63.55 times. This IPO of Rs 6560 crore got a record bid of Rs 3 lakh crore.

In this situation of oversubscription, investors adopted a simple method to increase the chances of share allotment, which is being given below. Now talking about the grey market, its shares are at a GMP (grey market premium) of Rs 74 i.e. 105.71% from the upper price band of the IPO. However, according to market experts, investment decisions should be taken based on the fundamentals and financials of the company instead of the signals received from the grey market. The price band for its IPO is ₹66-₹70.

How will the chance of allotment increase

Under the Rs 6560 crore IPO of Bajaj Housing Finance, shares worth Rs 500 crore have been set aside for the shareholders of Bajaj Finance and Bajaj Finserv. This means that if you have even one share of these two companies in your portfolio, you can also apply from the shareholder quota. Thus, if you want to apply for two lots, then you can apply one lot from the shareholder quota and the other lot from the retail shareholder quota. Apart from this, if you want to apply for one more lot, you can also apply under the category of more than Rs 2 lakh i.e. Non-Institutional Investors (NII). Thus, applying from three quotas will increase the chances of share allotment.

Category-wise subscription status

Qualified Institutional Buyers (QIBs) –  209.36 times

Non-Institutional Investors (NII) – 41.51 times

Retail investors – 7.04 times

Employees - 2.05 times

Shareholders - 17.53 times

Total- 63.61 times

(Source: BSE)

Details of Bajaj Housing Finance IPO

Bajaj Housing Finance's ₹6,560.00 crore IPO had a price band of ₹66-₹70 and was for 214 shares. Allotment of shares under the IPO will be finalized on September 12. Then the entry will be made on BSE and NSE on September 16. The registrar of the issue is KFintech. Under this IPO, new shares worth Rs 3,560.00 crore will be issued. Apart from this, 42,85,71,429 shares with a face value of Rs 10 will be sold under the Offer for Sale window. Under the Offer for Sale, the shares will be sold by its parent company Bajaj Finance. The money from the Offer for Sale will be received by the shareholders selling the shares. At the same time, the money raised through new shares will be used to increase the capital base of Bajaj Housing Finance.

Details of Bajaj Housing Finance

Bajaj Housing Finance, formed in 2008, is a non-deposit-taking housing finance company (HFC). It has been registered with the National Housing Bank (NHB) since 2015 and has been providing mortgage loans since FY 2018. RBI has declared it as an upper-layer NBFC in India. Due to this step of RBI, Bajaj Housing Finance's IPO has come because according to RBI rules, it is mandatory to list the shares within three years after becoming an upper-layer NBFC and this deadline for Bajaj Finance was to end in September 2025.

This company of Bajaj Group provides services like home loans, loan against property (LAP), rent concession and developer finance. According to the data till March 2024, it had 3,08,693 active customers of which 81.7 per cent were home loan customers. It has 215 branches at 174 locations in 20 states and 3 union territories of the country. It has six centralized retail loan review centres and seven central loan processing centres.

Talking about the financial health of the company, it has been continuously strengthening. In the financial year 2022, it had a net profit of Rs 709.62 crore, which jumped to Rs 1,257.8 crore in the next financial year 2023 and reached Rs 1,731.22 crore in the financial year 2024. During this period, the company's revenue grew at a compound growth rate (CAGR) of more than 42 per cent annually to Rs 7,617.71 crore. Talking about this financial year 2024-25, in the first quarter April-June 2024, it has achieved a net profit of Rs 482.61 crore and a revenue of Rs 2,208.73 crore.

What is the trend in brokerage?

Swastik Investment says that its sales and profit growth has been sustainable and its financial health is very strong. It is also well supported by the strong legacy of Bajaj Group. The brokerage believes that this IPO has come at the right valuation, so the brokerage has given it a subscribe rating not only for listing gains but also for long-term investment.