Exciting Surge: Bajaj Housing Finance’s Rs 6,560 Crore IPO Skyrockets with 7.50x Subscription on Day 2 | Market News
Bajaj Housing Finance IPO Sees Robust Demand on Second Day
Mumbai, September 10, 2024 | 11:58 PM IST
Bajaj Housing Finance Ltd’s Rs 6,560-crore initial public offering (IPO) witnessed strong investor interest, being oversubscribed 7.50 times on the second day of bidding, Tuesday, according to data from NSE. The IPO received bids for 545.86 crore shares against the 72.76 crore shares on offer.
Demand was particularly high among non-institutional investors, whose portion was subscribed 16.45 times. Qualified Institutional Buyers (QIBs) saw 7.46 times subscription, while the Retail Individual Investors (RIIs) segment attracted 3.83 times subscription.
The IPO quickly garnered full subscription within hours of opening on Monday, ending the first day with twice the subscriptions. Earlier, Bajaj Housing Finance reported raising Rs 1,758 crore from anchor investors on Friday. The share sale concludes on September 11, with a price band set at Rs 66-70 per share.
The IPO comprises a fresh issue of shares worth up to Rs 3,560 crore and an offer-for-sale (OFS) totaling Rs 3,000 crore by parent company Bajaj Finance. This move aims to comply with Reserve Bank of India’s regulations mandating the listing of upper-layer non-banking finance companies on stock exchanges by September 2025. Funds from the fresh issue will bolster the company’s capital base for future needs.
Registered with the National Housing Bank since September 2015, Bajaj Housing Finance provides financial solutions for residential and commercial property acquisition and renovation. The company has been categorized as an "upper layer" NBFC by the RBI, offering a range of mortgage products including home loans, loans against property, and developer financing.
Recent months have seen other housing finance companies like Aadhar Housing Finance and India Shelter Finance also listed. The IPO’s book-running lead managers are Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, Axis Capital and JM Financial Ltd.
Original Story https://www.business-standard.com/markets/news/bajaj-housing-finance-rs-6-560-crore-ipo-booked-7-50-times-on-day-2-124091001522_1.html
Category :
Tags:
