Shares of Bajaj Finserv and Bajaj Finance climbed about 3 per cent on Thursday amid anticipation of the Rs 7,000 crore initial public offering (IPO) announcement for its mortgage lending subsidiary, Bajaj Housing Finance. The IPO is anticipated to launch in the market sometime during the first half of September.
Bajaj Finserv rose to Rs 1,765.70, a significant increase of 3.05 per cent on Thursday. Bajaj Finserv ended the previous trading session on Wednesday with a closing price of Rs 1,713.50. In the trading session on BSE today, Bajaj Finance shares rose 3.33 per cent to Rs 7,122.45.
Over the past three months, the company has delivered a noteworthy return of 9.15 per cent, showcasing its strong performance in the financial markets. This positive trajectory suggests favourable investor sentiment and potential for further growth in the company's stock value.
Meanwhile, the expected IPO will include a special allocation for Bajaj Finserv and Bajaj Finance shareholders, both of whom are classified as ‘promoters.’ Bajaj Finance owns a 100 per cent stake in Bajaj Housing, while Bajaj Finserv holds a 51.34 per cent stake in Bajaj Finance. The public issue will consist of a fresh issue of Rs 4,000 crore and an offer-for-sale of Rs 3,000 crore. Afterwards, the IPO will be listed on both the BSE and NSE.
Although the company has not yet announced the price band, Bajaj Housing Finance is already trading at a grey market premium of Rs 41 in the unlisted markets.
In June, Bajaj Housing Finance submitted its draft red herring prospectus (DRHP) for a Rs 7,000-crore IPO to the Securities and Exchange Board of India (SEBI). The company needed to adhere to Reserve Bank of India (RBI) regulations, which require upper-tier non-banking finance companies to be listed on the stock market by September 2025.
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