Bajaj Housing Finance IPO Gets 31 Times Over Subscribed; Bidding Closes Today
Qualified institutions pours Rs 97,824 crore with more than 83 times subscription
The initial public offering (IPO) of Bajaj Housing Finance, opened on 09 September in an attempt to raise Rs 6,500 crore from the public market is set to close on 11 September for public subscription.
During its subscription phase, the IPO garnered a total subscription 31 times at the time of filing this report. Retail category remained comparatively muted with a total subscription of nearly 6.3 times. However, qualified institutions poured Rs 97,824 crore with more than 83 times subscription.
The IPO will close today, while the allotment for the issue will be finalised on 12 September.
The Rs 6,560 crore IPO consisted of a fresh issue worth Rs 3,560 crore and an offer for sale (OFS) worth Rs 3,000 crore.
The anchor investor bid which commenced on 06 September, closed with full subscription worth Rs 1,758 crore.
The price band of the offer is fixed at Rs 66 to 70 per equity share. Bids can be made for a minimum of 214 equity shares and in multiples of 214 equity shares thereafter.
For subscription by employee, the reservation portion includes equity shares aggregating up to Rs 200 crore and for shareholders of Bajaj Finance and Bajaj Finserv, reservation portion includes Equity Shares aggregating up to Rs 500 crore.
The company, which is a division of non-bank finance company (NBFC) Bajaj Finance, planned for IPO after the Reserve Bank of India (RBI) established standards for Bajaj Housing Finance to be listed on stock markets by September 2025 and published a list of NBFCs with Rs 500 billion in assets under management (AUM) in September 2022.
In terms of financial performance, the Bajaj Housing Finance reported revenue of Rs 7,617 crore in FY 23-24 against Rs 5,665 crore in FY 22-23. The profit after tax (PAT) increased to Rs 1,731 crore in FY 23-24 against Rs 1,257 crore in FY 22-23.
The company intends to utilise the net proceeds of the offer towards augmenting its capital base to meet future business requirements of the company towards onward lending.
The equity shares to be offered through the red herring prospectus are proposed to be listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 06 September.
Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, Goldman Sachs (India) Securities, SBI Capital Markets, JM Financial and IIFL Securities are the book running lead managers to the offer.
