Bajaj Housing Finance IPO Close With Subscription Worth Over Rs 3 Lakh Crore
Qualified institutions pours Rs 2,60,239 crore with more than 222 times subscription
The initial public offering (IPO) of Bajaj Housing Finance, which attempted to raise Rs 6,500 crore from the public market closed on 11 September for public subscription with subscription worth over Rs 3 lakh crore.
During its subscription phase, the IPO garnered a final subscription of 67 times. Retail category remained comparatively muted with a total subscription of nearly 7.4 times. However, qualified institutions poured Rs 2,60,239 crore with more than 222 times subscription.
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 price band of the offer is fixed at Rs 66 to 70 per equity share.
The allotment for the issue will be finalised on 12 September, while the equity shares will 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.
For subscription by employee, the reservation portion included equity shares aggregating up to Rs 200 crore and for shareholders of Bajaj Finance and Bajaj Finserv, reservation portion included Equity Shares aggregating up to Rs 500 crore.
In terms of financial performance, 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 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.
