Bajaj Housing Finance IPO: How to apply under shareholders category?

Bajaj Housing Finance has launched its Rs 6,560 crore-initial public offering (IPO) for bidding on Monday, September 9. The Bajaj Group-backed issue will remain open for three-day and can be subscribed until Wednesday, September 11. The company is offering its shares in the range of Rs 66-70 apiece with a lot size of 214 equity shares and its multiples thereafter.

 

The issue includes a fresh share sale of Rs 3,560 crore and an offer-for-sale (OFS) of upto 3,000 crore by Bajaj Finance Ltd, the parent of the shadow lender. In its IPO, the company has reserved shares worth Rs 500 crore to the shareholders of its parent entities- Bajaj Finance and Bajaj Finserv. Here are all the details one needs to know for applying under shareholders category:

 

Who is eligible to apply under shareholders' quota in Bajaj Housing Finance IPO?

Any investors who held even a single share of Bajaj Finance or Bajaj Finserv as of the cut-off date, that is the date of filing the red herring prospectus (RHP) can apply under the shareholder's quota for Bajaj Housing Finance IPO. However, the cut-off date for the same was August 30, 2024. Investors having at least one share of the either parent entity as of the given date are eligible.

 

What is the benefit of applying under the shareholder's category?

An investor, who is eligible to apply under shareholder's category, can make two applications for the IPO. First, they can apply for the retail/non-institutional investor category and second, under the shareholder's category. This increases their probability of getting the allotment of shares. However, they have to make mandates twice and their funds shall also be blocked separately.

 

Is IPO price and lot size different for shareholder's category?

No, the price band and lot size are not different for any category. They are equal for all investors across the categories. Investors under all categories need to apply for a minimum 214 equity shares and its multiples thereafter in the fixed price band of Rs 66-70. Minimum application size at the upper end of the price band is Rs 14,980 and at the lower end of price band it Rs 14,124.

 

What is the minimum and maximum application for the shareholder's category?

Like retail bidders, shareholders can make bids for a maximum Rs 2 lakh in their category. It means that an investor can apply for a maximum of 13 lots or 2,782 equity shares amounting to Rs 1,94,740 under shareholder's category. However, they can make a similar application in the retail category. In HNI/NII category, there is no cap on the investment on bidding after Rs 2 lakh. Small HNI investors can make an application of up to Rs 10 lakh, while big HNI investors can make applications above Rs 10 lakh

 

Thus shareholder's of Bajaj Finance and Bajaj Finserv have three option with maximum and minimum application size as follows:

i. Shareholders + Retail: Minimum- Rs 14,980 and 14,980 | Maximum: Rs 1,94,740 and Rs 1,94,740

ii. Shareholders + SHNI: Minimum- Rs 14,980 and Rs 2,09,720 | Maximum: Rs 1,94,740 and Rs 988,680

iii. Shareholders + BHNI: Minimum- Rs 14,980 and Rs 1,003,660 | Maximum: Rs 1,94,740 and no cap above Rs 10 lakh