Bajaj Housing Finance IPO Anchor Allocation at 26.8%

Bajaj Housing Finance IPO saw a positive anchor allocation response, with 26.8% of the total IPO size subscribed by anchor investors. Out of 937,142,858 shares on offer, anchors picked up 251,142,856 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 6th September 2024, just ahead of the IPO opening on 9th September 2024.

The book-built issue of ₹6,560.00 crores comprises a fresh issue of 508,571,429 shares aggregating ₹3,560.00 crores and an offer for sale of 428,571,429 shares aggregating ₹3,000.00 crores. The price band is set at ₹66 to ₹70 per share, with a face value of ₹10 per share. This includes a share premium of ₹60 per share at the upper end of the price band.

The anchor allocation process, which took place on 6th September 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹70 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the Bajaj Housing Finance IPO looks as follows:

Notably, the 25,11,42,856 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 44.67% before the anchor allocation to 17.87% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Bajaj Housing Finance Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 12th October 2024
• Lock-in Period (Remaining Shares): 11th December 2024

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Bajaj Housing Finance IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 6th September 2024, Bajaj Housing Finance IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 251,142,856 shares were allotted to 104 anchor investors. The allocation was done at the upper IPO price band of ₹70 per share, resulting in an overall anchor allocation of ₹1,758.00 crore. The anchors have already absorbed 26.8% of the total issue size of ₹6,560.00 crore, indicating strong institutional demand.

Out of the 251,142,856 Equity Shares allocated to the Anchor Investors, 89,714,228 Equity Shares (i.e., 35.72% of the total allocation to Anchor Investors) were allotted to 21 domestic mutual funds that applied through 43 schemes.
The detailed and comprehensive report on the anchor allocation can be accessed on the BSE website.

Key IPO Details:

• IPO Size: ₹6,560.00 crores
• Shares Allocated to Anchors: 251,142,856
• Anchor Subscription Percentage: 26.8%
• Listing Date: 16th September 2024
• IPO Opening Date: 9th September 2024

About Bajaj Housing Finance IPO and How to apply for Bajaj Housing Finance IPO

Bajaj Housing Finance Limited, founded in 2008, is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015. The company is part of the Bajaj Group and has been offering mortgage loans since the financial year 2018.

The company provides customized financial solutions to individuals and corporations for the purchase and renovation of homes and commercial spaces. Its mortgage product range includes home loans, loans against property (LAP), rent concessions, and developer finance. As of March 31, 2024, the company had 308,693 active customers, 81.7% of whom were home loan customers.

Bajaj Housing Finance has a network of 215 branches in 174 locations across 20 states and three union territories, supported by six centralised retail loan review centres and seven centralised loan processing centres.

Read about Bajaj Housing Finance IPO

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