Bajaj Housing Finance’s red-hot debut: 114 per cent premium - 30 crore shares change hands in just 7 minutes!

Bajaj Housing Finance’s red-hot debut: 114 per cent premium - 30 crore shares change hands in just 7 minutes!

Gaurav Taparia
/ Categories: Trending, Mindshare

The excitement continued as the stock quickly touched a high of ₹161 soon after opening, and as of 10:06 am, it was trading at ₹155.30.

The much-anticipated debut of Bajaj Housing Finance on the stock exchanges has finally happened, and it’s nothing short of spectacular. The company listed its shares on both the National Stock Exchange (NSE) and the BSE on Monday, September 16, 2024, marking a significant milestone for the non-deposit-taking housing finance company.

A Blockbuster IPO Subscription

The Bajaj Housing Finance IPO, which was open for bidding from September 9 to September 11, 2024, raised an impressive Rs 6,560 crore. The response to the IPO was overwhelming, with an overall subscription of 63.61 times.

Here’s a closer look at the subscription details:

  • Qualified Institutional Buyers (QIBs): 209.36 times subscribed.
  • Non-Institutional Investors (NIIs): 41.51 times subscribed.
  • Retail Individual Investors (RIIs): 7.04 times subscribed.

The huge demand from institutional buyers, particularly QIBs, indicated strong confidence in the company’s future prospects.

Listing at a Premium

Bajaj Housing Finance shares made an impressive debut, listing at Rs 150 on the BSE, which is a whopping 114.2% premium over its issue price of Rs 70. The excitement continued as the stock quickly touched a high of Rs 161 soon after opening, and as of 10:06 am, it was trading at Rs 155.30. Within just 7 minutes of listing, over 30 crore shares had already been traded, showcasing high investor interest.

Strong Financials Fuel Investor Interest

One of the key reasons for the strong IPO response is the company’s robust financial performance. Bajaj Housing Finance has shown a significant jump in profits from FY22 to FY24, growing by 2.44 times in this period. Meanwhile, the company’s revenue also increased twofold, reflecting steady growth and operational efficiency.

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Use of Proceeds

The proceeds from the fresh issue will be used to bolster Bajaj Housing Finance's capital base, ensuring it is well-positioned to meet future capital requirements. This strategic move is aimed at supporting the company's expansion plans and catering to the growing demand for housing finance solutions.

About Bajaj Housing Finance

Bajaj Housing Finance is a well-known non-deposit-taking housing finance company (HFC) that specializes in offering financial solutions for both residential and commercial properties. Whether it's buying, renovating, or financing, Bajaj Housing Finance provides a wide range of services to meet the needs of individuals and businesses alike.

Lead Managers

The IPO was managed by some of the top names in the financial world, including SBI Capital Markets Ltd, Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Goldman Sachs (India) Securities Private Ltd, JM Financial Ltd, and Axis Capital.

Conclusion

Bajaj Housing Finance’s stock market debut has certainly lived up to expectations. With strong financials, robust investor demand, and a clear strategy for growth, the company has made a solid entry into the stock market. Investors will be keenly watching its future performance as it continues to expand its footprint in the housing finance sector.

Disclaimer: The article is for informational purposes only and not investment advice. 

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