Bajaj Housing Finance Listing: Shares Surge With 114% Premium On Market Debut

Bajaj Housing Finance Listing: Prior to its listing, the company's shares were trading at a grey market premium (GMP) of 120 per cent above the issue price

Bajaj Housing Finance Listing: The Rs 6,560 crore IPO was highly oversubscribed, with bids coming in nearly 67 times the shares available for sale.

Source : FreePik

Bajaj Housing Finance Listing: Bajaj Housing Finance made a robust debut on the stock exchanges on Monday, with shares listing at Rs 150 per share on both the NSE and BSE, marking a 114 per cent premium over the IPO issue price. The company, India's second-largest home loan financier by assets under management (AUM), had generated substantial interest, receiving bids worth approximately $38.60 billion during the IPO last week.

The stock got listed at Rs 150 on both the BSE and NSE, reflecting a jump of 114.28 per cent from the issue price. It zoomed 129.88 per cent to Rs 160.92 on the BSE, while at the NSE, shares soared 130 per cent to Rs 161.

Prior to its listing, the company's shares were trading at a grey market premium (GMP) of 120 per cent above the issue price. The Rs 6,560 crore IPO was highly oversubscribed, with bids coming in nearly 67 times the shares available for sale.

The company plans to utilise the net proceeds from the IPO to meet future business requirements, particularly for onward lending.

Master Capital Services commented on the IPO, advising investors to consider holding the stock for the medium to long term, citing Bajaj Housing Finance's strong growth trajectory, significant presence in the housing finance sector, and competitive valuation compared to its peers.

The Rs 6,560-crore IPO, which closed on September 11, broke the previous subscription record held by Coal India, demonstrating robust investor interest. Bajaj Housing Finance, the second-largest housing finance company in India, benefits from the strong backing of its parent company, Bajaj Finance. It boasts a diversified product portfolio, a high-quality asset base, and consistent profitability. The company's minimal exposure to high-risk assets further boosted investor confidence.

The IPO complied with the Reserve Bank of India's mandate, which requires large non-banking financial companies (NBFCs) to list on stock exchanges by September 2025. The funds raised will strengthen Bajaj Housing Finance's capital base, enabling future growth. Recently, Aadhar Housing Finance and India Shelter Finance have also listed on the stock exchanges.

Leading financial institutions, including Kotak Mahindra Capital, BofA Securities India, SBI Capital Markets, Goldman Sachs (India) Securities, Axis Capital, and JM Financial, acted as book-running lead managers for the IPO.