Bajaj Housing Finance IPO fully subscribed on day 1; retail, NII portions oversubscribed; check GMP and other details

Bajaj Housing Finance initial public offerings (IPO) was fully subscribed with four hours of opening on its first day of bidding on September 9. The issue was oversubscribed 2.02 times by the end of the first day of bidding, as per data available on stock exchanges.

The Non-Institutional Investors (NII) category saw a subscription of 4.35 times, while the Retail Individual Investors (RIIs) portion was subscribed 1.51 times. According to BSE data, the Qualified Institutional Buyers (QIBs) segment received bids for 19 crore shares compared to the 17.75 crore shares available.

The Bajaj Housing Finance IPO has reserved up to 50 per cent of the shares for qualified institutional buyers (QIB), 15 per cent for non-institutional investors (NII), and at least 35 per cent of the offer for retail investors.

Bajaj Housing Finance IPO details

The Bajaj Housing Finance IPO is priced between ₹66 and ₹70 per share and includes a fresh issue of equity shares worth up to ₹3,560 crore, as well as an offer-for-sale (OFS) of ₹3,000 crore in equity shares by its parent company, Bajaj Finance.

The funds from the fresh issue will be used to bolster the company's capital base for future needs. This share sale is in compliance with the Reserve Bank of India's (RBI) regulations, which require upper-layer non-banking finance companies to be listed on stock exchanges by September 2025.

On September 6, Bajaj Housing Finance announced that it has secured ₹1,758 crore from anchor investors ahead of launching its initial public share sale for public subscription.

Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets Ltd, JM Financial Ltd, IIFL Securities Ltd, and Kotak Mahindra Capital Company Ltd are serving as the book-running lead managers for the offering.

Bajaj Housing Finance IPO GMP

The current GMP for the Bajaj Housing Finance IPO is +59, suggesting that the shares are trading at a premium of ₹56 in the grey market, as reported by investorgain.com.

The anticipated listing price of Bajaj Housing Finance shares is projected to be ₹129.5 each, based on the upper limit of the IPO price range and the current grey market premium. This represents an 85% increase from the IPO price of ₹70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.