The Rs 6,560-crore initial public offering (IPO) of Bajaj Housing Finance Ltd received a stellar investor response, especially from the qualified institutional buyer (QIB) category which got the maximum thrust with a subscription of 209.36 times on the third and final day (Day 3) of bidding process.
On Wednesday, the portion kept for non-institutional investors (NIIs) witnessed was subscribed 41.51 times and the category reserved for shareholders was booked 17.52x. Retail investors and employee portions saw 7.04x and 2.05x bids, respectively.
Overall, the issue received 46,28,42,48,276 against 72,75,75,756 shares on offer with an overall subscription of 63.61 times. With this, Bajaj Housing apparently became the first company Ltd to cross Rs 3 lakh crore bidding value during the initial share sale phase. The IPO secured bids worth more than Rs 3.23 lakh crore. As earlier mentioned, the robust demand was led by institutional investors who made bids worth Rs 2.6 lakh crore.
To recall, the IPO of Premier Energies Ltd attracted bids worth more than Rs 1.48 lakh crore last month. Before this, Tata Technologies Ltd's IPO in November 2023 received total bids worth Rs 1.56 lakh crore. Earlier in time, Coal India Ltd's IPO collected bids valued at Rs 2.33 lakh crore in 2008.
The price band of the now-concluded Bajaj Housing IPO was fixed at Rs 66-70 apiece. Investors were able to apply for a minimum of 214 equity shares and in multiples thereafter.
Bajaj Housing is aiming to raise Rs 6,560 crore from its primary stake sale, which includes a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore from its promoter Bajaj Finance Ltd. The net proceeds from the issue will be utilised to augment the capital base to meet future business requirements of the company towards onward lending.
Grey market premium (GMP)
In the grey market, Bajaj Housing shares were last seen trading at a premium of 104.29 per cent against its issue price of Rs 70 (upper price band). The stock is likely to get listed on September 16.
"Bajaj Housing's IPO was popular among investors, given the company's pedigree, strong presence, growing mortgage business and the current buoyancy in primary market. The stock is expected to stage a solid debut. If it delivers a strong listing pop, investors can consider booking some profit," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
At least 16 domestic brokerages, such as Chola Securities, IDBI Capital, Incred Equities, Nirmal Bang Securities, Canara Bank Securities, Reliance Securities, Devan Choksey Research, Marwadi Shares, BP Equities, StoxBox, Mehta Equities, LKP Research, Ventura Securities, SMIFS, Gupta Equities and Kunvarji Wealth Solutions, gave a 'Subscribe' call to the IPO.
Ahead of its IPO, the company raised Rs 1,758 crore from anchor 104 investors. Bajaj Housing's anchor book included names like the Government of Singapore, New World Fund Inc, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, JP Morgan and a host of domestic mutual funds and insurance players.
The company reported a net profit of Rs 482.61 crore with a revenue of Rs 2,208.73 crore for the three months ended on June 30 2024. Its net profit came in at Rs 1,731.22 crore with a revenue of Rs 7,617.71 crore for the financial year ended on March 31, 2024.
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, while Kfin Technologies is the registrar of the issue.
Separately, Wednesday (September 11) also marked Day 3 of two other mainboard IPOs, Tolins Tyres Ltd and Kross Ltd, which were booked 23.89 times and 16.81 times, respectively. Also, PN Gadgil Jewellers IPO, which opened for subscription yesterday, received 6.90 times bids on Day 2.