Bajaj Housing Finance IPO: Bajaj Housing Finance Limited's initial public offering (IPO) is set to hit the Indian primary market on Monday. The largest IPO of 2024 will remain open for bidders until 11 September 2024, i.e., Wednesday next week. The Non-Banking Financial Company (NBFC) has fixed the Bajaj Housing Finance IPO price band at ₹66 to ₹70 per equity share. The mainboard public issue is a mix of fresh shares and offers for Sale (OFS).
The Bajaj Group NBFC aims to raise ₹6,560 crore from this initial offer, of which ₹3,000 crore is reserved for the OFS. The remaining ₹3,560 crore is aimed at the issuance of fresh shares. Those who held Bajaj Finance or Bajaj Finserv shares on the Bajaj Housing Finance IPO RHP filing date can apply under the Bajaj Housing Finance IPO shareholder quota.
Meanwhile, Bajaj Housing Finance shares are available in the grey market. According to stock market observers, shares of the Bajaj Group NBFC are available at a premium of ₹55 in the grey market today. They said Bajaj Housing Finance shares were available at a premium of ₹42 in the grey market ahead of the RHP filing. This means Bajaj Housing Finance IPO GMP (Grey Market Premium)) today is ₹55, and Bajaj Housing Finance IPO GMP has risen from ₹42 to ₹55 after the RHP filing, which is around 79 per cent higher than the upper price band of Bajaj Housing Finance IPO.
As mentioned above, those who held Bajaj Finance or Bajaj Finserv shares on the RHP filing date will be eligible to apply under the shareholders' quota. On 31st August 2024, Bajaj Housing Finance Limited filed the Red Herring Prospectus (RHP) at the market regulator SEBI, which means the Bajaj Housing Finance IPO shareholder quota record date is 31st August 2024. In other words, the Bajaj Housing Finance IPO shareholder quota will be available for those who held the parent company Bajaj Finance or Bajaj Finserv shares after the end of the session on 30th August 2024.
"This is expensive compared to peers like LIC Housing Finance (1.2x), PNB Housing (1.7x), and Can Fin Homes (2.7x), but in line with our expectations, given BHFL's robust yet diversified AUM growth (+30% CAGR), sturdy asset quality (NPAs less than 1%), and superior technology platform enabling it to remain relevant in a stiff competitive environment," said InCred Equities.
The brokerage added that Bajaj Housing Finance shares had been made available at 3.2 times their June 2024 book value (post dilution and adjusting for rights share allocation) at the upper price band of ₹70 per equity share.
The Bajaj Housing Finance IPO date of subscription has been declared from 9 to 11 September 2024. The Bajaj Housing Finance IPO price band has been announced at ₹66 to ₹70 per equity share. In the wake of the 'T+3' listing rule, the Bajaj Housing Finance IPO allotment date is most likely on 12 September 2024, whereas the most likely Bajaj Housing Finance IPO listing date is 16 September 2024.
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