Bajaj Housing Finance Rs 6,560 crore IPO booked 7.50 times on day 2
Bajaj Housing Finance Ltd’s initial public offering worth Rs 6,560 crore received 7.50 times subscriptions on the second day of bidding on Tuesday.
In the initial share sale, 5,450,850,770,822 shares were bid for, compared to 72,750,756 shares offered, according to NSE data.
The portion meant for non-institutional investors was subscribed 16.45 times, while the Qualified Institutional Buyers (QIBs) portion was subscribed 7.46 times. The quota for Retail Individual Investors (RIIs) was subscribed 3.83 times.
Bajaj Housing Finance’s initial public offering was fully subscribed within hours of opening bids on Monday and ended the day with subscriptions doubled.
Bajaj Housing Finance on Friday reported that it has received Rs 1,758 crore from key investors.
The first share sale will close on September 11.
The price range for the offer has been fixed at Rs 66-70 per share.
The IPO comprises a fresh issue of shares worth up to Rs 3,560 crore and an offer for sale (OFS) of shares worth Rs 3,000 crore by parent company Bajaj Finance.
The stake sale is being done to comply with Reserve Bank of India (RBI) regulations, which require non-banking financial companies in the upper echelons to be listed on the stock exchange by September 2025.
The proceeds from the new issue will be used to increase the company’s capital base to meet future capital needs.
It is a non-deposit-taking housing finance company registered with the National Housing Bank in September 2015. It provides financial solutions for the purchase and renovation of residential and commercial properties.
The RBI in India has classified it as an ‘upper tier’ NBFC and its extensive mortgage products include home loans, loans against properties, lease rent discounts and developer financing.
Aadhar Housing Finance and India Shelter Finance are the two housing finance companies that have gone public in recent months.
Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, SBI Capital Markets Ltd, Goldman Sachs (India) Securities Private Ltd, Axis Capital and JM Financial Ltd are the book-running lead managers for the offering.
First publication: Sep 10, 2024 | 11:58 PM IST