Bajaj Housing Finance shares make strong market debut; stock lists at 114% premium

Shares of Bajaj Housing Finance made a stellar debut at Dalal Street on Monday as the Bajaj Group firm was listed at Rs 150 on NSE, an astounding premium of 114.29 per cent over its issue price of Rs 70. Similarly, the stock kicks off its maiden trading session with the same premium and same price on BSE.
 

The listing has been slightly better than the expectations. Ahead of its listing, shares of Bajaj Housing Finance were commanding a grey market premium (GMP) of 73-75 per share, suggesting a listing pop of 104-105 per cent to the investors. However, the grey market premium stood at Rs 84 apiece earlier, following the historic bidding for the issue.
 

The IPO of Bajaj Housing Finance was open for bidding between September 9-11. The Pune-based company had offered its shares in the fixed range of Rs 66-70 per share with a lot size of 214 shares. The company raised Rs 6,560 crore via its primary offering, which included a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) worth Rs 3,000 crore by Bajaj Finance.
 

The issue saw a solid bidding and was overall subscribed 63.61 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 209.36 times The quota for non-institutional investors was subscribed 41.51 times. The portion reserved for shareholders, employees and retail investors saw bidding for 17.53 times, 2.05 times and 7.04 times, respectively.
 

Bajaj Housing Finance became the first Indian IPO to fetch bids worth Rs 3 lakh crore. The company attracted bids for 46,28,35,82,522 equity shares amounting to Rs 3.24 lakh crore. Only, the QIB portion itself fetched bids for 37,17,70,59,692 shares worth more than Rs 2.60 lakh crore for 17,75,75,756 shares offered for this category.
 

Incorporated in 2008, Bajaj Housing Finance 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. It is part of the Bajaj Group, a diversified group of companies with interests in various sectors.
 

Brokerages were mostly positive on the issue suggesting investors to subscribe to it. BofA Securities India, Axis Capital, Kotak Mahindra Capital Company, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities were the book running lead managers of the Bajaj Housing Finance IPO, while Kfin Technologies served as the registrar for the issue.