Bajaj Housing Finance IPO: The highly anticipated Bajaj Housing Finance IPO reaches its final day of bidding on Wednesday (11 September). After receiving overwhelming demand in the first two days, the public issue has already surpassed Rs 38,000 crore in bids, with investors keenly watching if the total subscription will hit Rs 1 lakh crore by the close of bidding.
The Rs 6,560-crore IPO saw robust demand, particularly from non-institutional investors (NIIs), who subscribed 16.45 times their reserved portion by the end of Day 2. Meanwhile, the quota for retail individual investors (RIIs) was subscribed 3.83 times, and qualified institutional buyers (QIBs) subscribed 7.46 times their allotted shares.
The IPO got off to a strong start on Day 1, Monday, 9 September, when it was fully subscribed within four hours of opening. By the end of the day, the issue was already subscribed twice.
Proceeds from the fresh issue will be used to augment the company's capital base to meet future capital requirements.
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The price range for the offering has been set at Rs 66-70 per share. It includes a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of Rs 3,000 crore by parent company Bajaj Finance.
This IPO is part of Bajaj Finance's strategy to comply with Reserve Bank of India (RBI) regulations that require upper-layer non-banking financial companies to be listed by September 2025.
Aadhar Housing Finance and India Shelter Finance are the two housing finance companies that have been listed on the stock exchanges in recent months.
Proceeds from the fresh issue will be used to bolster the company’s capital base to meet future requirements. The IPO’s lead managers include Kotak Mahindra Capital, BofA Securities India, SBI Capital Markets, Goldman Sachs India, Axis Capital, and JM Financial.
Investors await the final tally as the Bajaj Housing Finance IPO closes on Wednesday amidst high demand.