Business

Bajaj Housing Finance Shares Listing Date: GMP Indicates Huge Gains, IPO Investors Could Double Their Money

Next week, Bajaj Housing Finance is expected to make a spectacular return to the stock market after experiencing a phenomenal run in the primary market.

An unprecedented number of people responded to the public issue, with total subscriptions hitting an all-time high of Rs 3.23 lakh crore. This frenzy for demand got highly driven on strong market positivity and robust interest from retail investors.

This becomes relevant as the subscription number at more than Rs 3 lakh crore is more than 1 per cent of estimated nominal GDP for FY 2023-24 at Rs 295.36 lakh crore in constant prices.

Details of Bajaj Housing Finance Shares Listing

The shares of Bajaj Housing Finance shall be listed on both BSE and NSE on Monday, 16 September, at 10 AM.

Its grey market premium has also been increased in the IPO market to Rs 79 per share, indicating that the premium is higher than the issue price as much as 113 percent, indicating strong demand ahead of the listing.

The Rs 6,560 crore IPO of Bajaj Housing Finance, which closed on 11 September, breached all records, beating the previous high set by Coal India. The 2010 IPO of Coal India received subscriptions worth Rs 2.36 lakh crore.

In comparison, other major IPOs that went through this year including those of Premier Energies and Tata Technologies received bids worth Rs 1.48 lakh crore and Rs 1.56 lakh crore respectively.

Quite a few reasons can be cited that might have spurred investors’ interest in Bajaj Housing Finance, the second-biggest player in India’s housing finance sector, with a mixed bag of financial products and pretty robust support from the parent company for major growth.

The continuity in profitability and low exposure to high-risk assets reflects in Bajaj Housing Finance, driven by quality in its asset base, basically.

The proposed issue of IPO is also in line with the latest circular from the RBI that required big NBFCs to list on stock exchanges by September 2025.

The proceeds collected through this equity sale will be used to improve the capital base of the company so that it can fulfill its future financial requirements.

Bajaj Housing Finance, a non-deposit-taking housing finance company, registered with the National Housing Bank since September 2015, offers a range of financial solutions for purchasing and renovating residential and commercial properties.

Being a “systemically important” NBFC under RBI regulations, the firm offers a gamut of mortgage products catering to home loans, loans against property, lease rental discounting, and developer financing.

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Bajaj Housing Finance’s move comes when some recent entrants such as Aadhar Housing Finance and India Shelter Finance made it to the stock exchanges in some weeks, indicating continuous momentum in the housing finance sector in India.