Bajaj Housing Finance, the much awaited and anticipated IPO by the Bajaj Group, will close for bidding on Wednesday. The housing finance player has been able to attract a solid response from the investors so far, fetching bids for more than Rs 81,000 crore for the ex-anchor book shares available for bidding as of 11.45 am on September 11.
The robust interest from the investors across all the categories, coupled with strong parentage and reasonable valuations have pushed the current grey market premium (GMP) for Bajaj Housing Finance, which is hint towards it becoming a multibagger upon its listing, which is likely on Monday, September 16.
The current grey market premium for Bajaj Housing Finance is Rs 70 per share, suggesting a 100 per cent listing pop for the investors on its debut over its upper end of the price band. However, its GMP in the unofficial market has remained firm, at Rs 65 on day two, while it was Rs 57 on the first one. Its premium has remained above Rs 50 since the announcement of the IPO officially.
Adding to this notion, Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers said that Bajaj Housing Finance has strong parentage and its looking great even from the grey market premium perspective, where the premium remains robust.
"It has access to a large population in the country with an attractive cost of funds. As a leader in the housing Finance and real estate sectors having good potential we expect Bajaj Housing will give a multi-fold return like its parent company," he added.
The Bajaj Housing Finance is selling its shares in the price band of Rs 66-70 apiece, with a lot size 214 shares.It is looking to raise Rs 6,560 crore via IPO. Bajaj Housing Finance, founded in 2008, is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans since the financial year 2018.
Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book running lead managers of the Bajaj Housing Finance IPO, while Kfin Technologies is the registrar for the issue.