Bajaj Housing Finance IPO, which broke all records in terms of the highest ever number of applications and demand received, is expected to make a robust debut on Dalal Street on September 16. Data available with IPO Premium showed that shares of the company may more than double investors’ wealth on the listing.
The IPO, which closed on September 11, attracted 889.4 million applications totalling Rs 3.24 lakh crore against the issue size of Rs 6,560 crore. As per analysts’ calculations, the post-issue market capitalisation of Bajaj Housing Finance stands at Rs 58,297 crore. If it rallies 100% or more, as indicated by grey market premium, the market valuation of the company will surpass Rs 1 lakh crore on the listing day itself.
How big will it be post-listing? Market capitalisation of Colgate-Palmolive stood at Rs 99,536 crore on September 11. M-cap of other companies including Apollo Hospitals Enterprise, Info Edge (India), Solar Industries India, Oracle Financial Services Software, Jindal Steel & Power, GMR Airports Infrastructure, Bosch, Mankind Pharma, The Indian Hotels Company, NHPC, Oil India, HDFC Asset Management Company, IDBI Bank, Shree Cement and Canara Bank were also somewhere between Rs 90,000 crore to Rs 1 lakh crore on September 11.
Bajaj Housing Finance is scheduled to finalise the share allotment basis on Thursday, September 12. Bidders will get messages, alerts or emails for debit of their funds or revocations of their IPO mandate either on Friday or latest by weekend.
The company is a part of the diversified Bajaj Group and wholly owned subsidiary of Bajaj Finance Limited which is among India’s largest NBFC based on AUM as of Mar ‘24. Bajaj Housing Finance is the second largest housing finance company in India (in terms of AUM) with a track record of strong growth driven by a diversified portfolio across home loans, LAP, lease rentals and developer financing, with the largest share in home loans of higher average ticket size compared to the industry. Maharashtra accounts for close to one-third of AUM at 32%, followed by Karnataka 22.7%, Telangana 14.8%, Gujarat 8.1% and Delhi 7.6%. The Top 5 states accounted for 85.2% of the overall AUM end June 2024.