Bajaj Housing Finance’s IPO has shattered all previous records by receiving bids worth over ₹3.2 lakh crore, significantly surpassing expectations. The company initially aimed to raise approximately ₹6,560 crore through a combination of fresh equity sale and an offer for sale (OFS). At the close of the issue, it was oversubscribed by 63.6 times, driven primarily by strong interest from non-institutional investors, whose category was subscribed more than 200 times.
This overwhelming response comes despite three other ongoing IPOs in the market—Kross, Tolins, and PN Gadgil. Previously, the record was held by Tata Technologies, whose ₹3,000 crore IPO received bids totaling ₹1.5 lakh crore.
Bajaj Housing Finance’s shares are currently trading at a premium of ₹67-69 in the grey market, reflecting a 96% premium over the issue price.
Also Read: Bajaj Housing Finance IPO: Is It Worth Subscribing? Price, GMP, and Review
Ahead of the IPO, the company raised ₹1,758 crore from prominent anchor investors, including JP Morgan, Morgan Stanley, Nomura, and HDFC Mutual Fund. The funds raised will be used to strengthen the company’s capital base for future business needs, primarily for onward lending.
Bajaj Housing Finance, a non-deposit-taking Housing Finance Company (HFC), has been registered with the National Housing Bank since September 2015. The company provides customized financial solutions for residential and commercial properties, including home loans, loans against property, lease rental discounting, and developer financing. It has also been classified as an upper-layer Non-Banking Financial Company (NBFC) by the Reserve Bank of India (RBI).
Focusing on individual retail housing loans and offering a wide range of commercial and developer loans, Bajaj Housing Finance caters to a diverse clientele, from individual homebuyers to large-scale developers. In FY2023-24, the company posted a net profit of ₹1,731 crore, a 38% increase from ₹1,258 crore in FY23. During the same period, net income rose 34% year-on-year to ₹7,618 crore.