Bajaj Housing Finance shares more than double in blockbuster stock market debut

Bajaj Housing Finance listing: Bajaj Housing Finance shares made a blockbuster stock market debut on Monday, September 16. The stock opened for trading at Rs 150 on the National Stock Exchange against its Initial Public Offering ( IPO ) price of Rs 70, marking an upside of 114.29 per cent. On the BSE also, Bajaj Housing Finance shares opened at Rs 150.

Bajaj Housing Finance shares rose as much as 130 per cent from IPO price to hit an intraday high of Rs 161.

"The listing reflects investors' unwavering confidence in the company's robust financials, backed by the prestigious Bajaj Group. Bajaj Housing Finance's consistent growth, coupled with its reasonable valuation, made it a highly attractive investment proposition," said Shivani Nyati, head of wealth at Swastika Investmart.

"This successful debut is a testament to the company's strong fundamentals and the market's anticipation for its growth potential. Investors who were fortunate enough to secure allotments in the IPO may consider booking profit now, but those who want to hold their positions may do so by potentially setting a stop loss at Rs. 135 as a risk management strategy. However, it's essential to continuously monitor the company's performance and market conditions for informed decision-making," Nyati added.

Bajaj Housing Finance shares were in very high demand during the IPO as the issue was subscribed a whopping 63.61 times, data from the stock exchanges showed. The IPO garnered bids worth over Rs 3 lakh crore against its issue size of Rs 6,560 crore, making it the best IPO on record in Indian markets.

The IPO was oversubscribed from all categories of investors as the portion reserved for Qualified Institutional Buyers was booked 209.36 times, pie set aside for Non-Institutional Investors was booked 41.51 times and shares set aside for retail investors was subscribed 7.04 times.

Bajaj Housing Finance successfully raised Rs 6,560 crore through its IPO , which included a fresh issue of Rs 3,560 crore and an offer for sale of Rs 3,000 crore. Shares were offered in a price band of Rs 66-70 each. Retail investors were allowed to bid for a minimum of one lot (214 shares) up to 13 lots, with one lot priced at Rs 14,980 at the upper end of the price range.

Ahead of the IPO opening, Bajaj Housing Finance secured Rs 1,758 crore from anchor investors, including prominent names like Government of Singapore, Abu Dhabi Investment Authority, Fidelity, Morgan Stanley, and several Indian mutual funds such as HDFC MF, Kotak Mahindra MF, and SBI MF.

Bajaj Housing Finance, a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015, has been offering mortgage loans since 2018. As part of the diversified Bajaj Group, the company provides tailored financial solutions to individuals and corporates for purchasing and renovating homes and commercial spaces. Its mortgage portfolio includes a wide range of products such as home loans, loans against property (LAP), rent concessions, and developer finance.

The company plans to use the net proceeds to strengthen its capital base and support future business growth through onward lending.