Bajaj Housing Finance shares launched on September 16 at INR 150, reflecting a 114% premium over its IPO price of INR 70. The IPO attracted overwhelming interest, raising INR 6,560 crore with subscriptions totaling INR 3.23 lakh crore. Following strong market performance, the shares reached INR 164.99, boosting market capitalization beyond INR 1.1 lakh crore. Analysts praise the company's robust fundamentals and positive outlook for housing finance. The IPO was launched to comply with RBI regulations, and proceeds will enhance the company's capital to support future growth.
Bajaj Housing Finance shares made an impressive launch on the stock markets on September 16, listing at INR150 per share on both the NSE and BSE, reflecting a 114% premium over its IPO issue price. Successful IPO bidders had been allotted shares at INR 70 each in September last week. The listing gains of INR80 per share exceeded the company's grey market premium (GMP). On the morning of September 16, Bajaj Housing Finance shares were trading with a GMP of INR75, as reported by several platforms that track grey market activity.
Following the strong listing, Bajaj Housing Finance shares rose further to INR 164.99, a 135% jump from the IPO price. This propelled the company's market capitalisation to over INR1.1 lakh crore, more than double the INR 58,297 crore estimate based on the IPO allotment price of INR70 per share.
The company's INR6,560-crore initial public offering (IPO) garnered an overwhelming response, with subscriptions totalling INR3.23 lakh crore. Analysts credit Bajaj Housing Finance's strong fundamentals and the positive outlook for the housing finance sector for its potential to deliver higher returns in the long term.
The IPO was launched to comply with the Reserve Bank of India's (RBI) regulations, which mandate that upper-layer non-banking finance companies (NBFCs) list on stock exchanges by September 2025. The funds raised through the fresh issue will be used to strengthen the company's capital base to meet future requirements.
Bajaj Housing Finance, which was registered with the National Housing Bank in September 2015, is a non-deposit-taking housing finance company that provides financial solutions for residential and commercial property purchases and renovations. Classified as an "upper layer" NBFC by the RBI, the firm offers a range of mortgage products, including home loans, loans against property, lease rental discounting, and developer financing.
In conclusion, Bajaj Housing Finance's successful IPO and strong market response signify investor confidence and potential for long-term growth. With a solid capital base and a positive outlook in the housing finance sector, the company is well-positioned to leverage upcoming opportunities. Investors are encouraged to hold their shares to maximize returns as the firm navigates the evolving market landscape.
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