Bajaj Housing Finance Limited has recently launched its Initial Public Offering (IPO), which has garnered significant attention and investor interest. On 16 September 2024 Bajaj Housing Finance listed at both NSE and BSE with listing gain of 114%. Currently at 10:27am Bajaj Housing Finance share is trading at 159.36 rupees agains the IPO issue price band of 60 to 70 rupees.
IPO Overview
- Issue Size: The Bajaj Housing Finance IPO has an issue size of ₹6,560 crores.
- Price Band: The shares are being offered at a price band of ₹66 to ₹70 per share.
- Subscription: The IPO was highly oversubscribed, with a subscription rate of approximately 67.4 times as of September 11, 2024. This indicates strong demand from investors across various categories.
Key Dates
- IPO Open Date: September 9, 2024
- IPO Close Date: September 11, 2024
- Listing Date: Scheduled for September 16, 2024, on both BSE and NSE.
Financial Performance
Bajaj Housing Finance has shown robust financial growth, with a reported net profit of ₹1,731 crores for FY24, representing a 38% year-on-year increase. Additionally, net income grew by 34% to ₹7,618 crores during the same period. The company’s assets have also seen significant growth, increasing from ₹48,527 crores in March 2022 to ₹81,827 crores in March 2024.
Market Response and Expectations
- Grey Market Premium (GMP): The shares are trading at a grey market premium of approximately 113% over the issue price, suggesting potential substantial gains for investors upon listing. Analysts predict that the stock could double in value on its debut, reflecting high confidence in the company’s fundamentals and market position.
- Investor Sentiment: Analysts suggest a long-term investment perspective due to the strong fundamentals of Bajaj Housing Finance and the overall positive outlook for the housing finance sector. They recommend that conservative investors consider profit booking if listing gains exceed expectations, while long-term investors should hold for future growth.
Company Background
Bajaj Housing Finance, established in 2015, is a part of the Bajaj Group, a well-known conglomerate in India. The company specializes in a range of mortgage products, including home loans, loans against property, and developer financing. It focuses on low-risk salaried borrowers and has maintained a strong track record of profitability and low delinquency rates, making it one of the most trusted names in the housing finance sector in India.
Conclusion
The Bajaj Housing Finance IPO stands out due to its impressive subscription numbers, strong financial performance, and positive market sentiment. With a well-diversified product portfolio and backing from a reputable parent company, it is poised for a successful listing and continued growth in the competitive housing finance market.
