Bajaj Housing Finance Hits New High: Subscriptions Exceed ₹3,25,000 Crore

Bajaj Housing Finance's first-ever share sale attracted an extraordinary level of investor interest. The ₹6,560 crore offering received bids exceeding a staggering ₹3,25,000 crore. What’s more, the IPO garnered nearly 9 million applications, surpassing the previous record of 7.35 million applications set by Tata Technologies. This impressive turnout has set a new benchmark in the Indian market.

Key Details

Bajaj Housing Finance’s IPO set a new benchmark by attracting overwhelming demand across all investor categories, with total bids exceeding the shares on offer by a remarkable 67 times. Institutional investors stood out with a subscription rate soaring to an impressive 222 times. Meanwhile, high net worth individuals applying for shares up to ₹10 lakh subscribed at 51 times, while those investing more than ₹10 lakh saw a 31 times subscription rate. Retail investors also showed significant interest, contributing bids totaling over ₹60,000 crore.

               
(Image courtesy of Business Standard)

The issue attracted bids for a total of 46,28,42,48,276 shares, far exceeding the 72,75,75,756 shares available, achieving an overall subscription rate of 63.61 times. This marked a significant milestone for Bajaj Housing, making it the first company to cross the ₹3,00,000 crore mark in bidding value during its initial public offering (IPO). With bids worth over ₹3,23,000 crore, institutional investors played a key role, contributing a substantial ₹2,60,000 crore to the total.

The price range for Bajaj Housing Finance’s IPO was set between ₹66-70 per share, with the minimum application being 214 equity shares, and investors able to apply in multiples thereafter.

Before Bajaj Housing Finance IPO went live, it had secured ₹1,758 crore from 104 anchor investors. Among the notable participants were prominent global and domestic institutions such as the Government of Singapore, New World Fund Inc, ADIA, Fidelity, Invesco, HSBC, Morgan Stanley, Nomura, and JP Morgan, alongside domestic mutual funds and insurance firms.

Through this IPO, Bajaj Housing aims to raise ₹6,560 crore, comprising ₹3,560 crore from a fresh issue of shares and ₹3,000 crore through an offer-for-sale (OFS) by its promoter, Bajaj Finance Ltd. Investment in Bajaj Housing Finance is intended to bolster the company’s capital base and support its business growth, particularly for future lending activities.

(image courtesy of Times of India)

At least 16 domestic brokerages, such as Chola Securities, IDBI Capital, Incred Equities, Nirmal Bang Securities, Canara Bank Securities, Reliance Securities, Devan Choksey Research, Marwadi Shares, BP Equities, StoxBox, Mehta Equities, LKP Research, Ventura Securities, SMIFS, Gupta Equities and Kunvarji Wealth Solutions, gave a 'Subscribe' call to the IPO.

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"Bajaj Housing's IPO was popular among investors, given the company's pedigree, strong presence, growing mortgage business and the current buoyancy in primary market. The stock is expected to stage a solid debut. If it delivers a strong listing pop, investors can consider booking some profit," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book-running lead managers, while Kfin Technologies is the registrar of the issue.