Bajaj Housing Finance is all set to open its initial public offering (IPO) for subscription on Monday. The company’s maiden issue is priced between the range of Rs 66 to Rs 70 per share and will stop accepting bids for subscriptions on September 11, 2024.
The much-awaited IPO worth Rs 6,560 crore is being keenly observed by investors as the grey market signals a robust listing ahead. Grey Market Premium on the issue is ranging near 79 per cent, indicating strong gains for the investors after listing.
The grey market represents an unofficial parallel markets where investors trade for shares or applications before they are officially launched for trading on the stock exchange. A high premium in the grey market indicates a positive debut for the company’s shares in the stock market.
The maiden listing comprises of a fresh issue of equity shares worth Rs 3,560 crore and an offer-for-sale (OFS) of shares worth Rs 3,000 crore, by the parent company, Bajaj Finance. Investors will be able to place bids for the issue in a minimum lot size of 214 equity shares and in multiples of thereafter.
The book-running lead managers of the issue include Axis Capital Ltd, JM Financial Ltd, BofA Securities Pvt Ltd, Kotak Mahindra Capital Company Ltd, Goldman Sachs (India) Securities Pvt Ltd, and IIFL Securities Ltd.
Investors will be informed about their allotment status on September 12, 2024, and the shares of the company will make their debut in the stock market on September 16, 2024. The proceeds raised from the issue would be utilised to enhance the firm’s capital base and see to its financial requirements going ahead.
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Notably, this issue is being floated by the firm to maintain compliance with the norms of the Reserve Bank of India (RBI). As per the central bank, it is mandatory for upper-layer non-banking finance companies (NBFCs) to list their firms on the stock exchanges by September 2025.