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The much-anticipated initial public offering (IPO) of Bajaj Housing Finance is set to open for public subscription on Monday, September 9, 2024. The company, a subsidiary of Bajaj Finance, has already successfully raised Rs 1,758 crore from anchor investors. The IPO, aiming to raise a total of Rs 6,560 crore, has fixed a price band of Rs 66 to Rs 70 per share for the public offering.
The IPO is divided into quotas, with 50% reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for high-networth individuals. Additionally, Bajaj Housing Finance has set aside Rs 500 crore worth of shares for eligible shareholders of Bajaj Finance Limited and Bajaj Finserv Limited under a shareholder reservation quota.
The grey market premium (GMP) for Bajaj Housing Finance shares is currently trading at Rs 50 higher than the issue price, indicating a potential listing gain of 71.43%. However, it's crucial to note that the GMP is based on market sentiment and can fluctuate. Analysts from brokerage firms like Anand Rathi and InCred Equities have recommended a 'buy' and 'subscription' rating for the IPO, respectively, citing the company's strong financial performance, growth potential, and robust asset quality.
Bajaj Housing Finance's IPO is a significant event for the Indian financial sector, reflecting the growth of the housing finance market. The IPO is also expected to boost the parent company's re-rating potential. As the IPO opens for subscription, investors will closely monitor market dynamics and analysts' recommendations before making investment decisions.
Source: Bajaj Housing Finance IPO: Check Price, GMP, Recommendations, Quota, Issue Size