The initial public offering (IPO) of Bajaj Housing Finance was oversubscribed within hours of opening for subscription on Monday, showcasing robust demand from investors. According to data from the National Stock Exchange (NSE), the Rs 6,560 crore issue received bids for 73.02 million shares against an IPO size of 72.76 million shares, registering an overall subscription of 1x on day 1 of the offering.
The portion of the IPO reserved for non-institutional investors (high net worth individuals and corporates) witnessed particularly strong demand, receiving bids 2.29 times the reserved size. The retail investor category was also nearly fully subscribed at 0.97 times. Meanwhile, qualified institutional buyers (large financial institutions) submitted subscription bids for just 2% of the shares reserved for them.
Bajaj Housing Finance is the finance arm of Bajaj Finance, one of the largest and most recognized lending brands in India. The funds raised through the IPO will enhance the company’s capital base as it seeks to capitalize on the immense growth opportunity in India’s housing finance sector. The price band for the issue was set at Rs 66-70 per share.
The speedy subscription of the IPO within hours suggests robust demand for shares of reputed housing financiers. It reflects both investor interest in the segment’s long term growth potential as well as confidence in Bajaj Housing Finance’s business model and lineage to the Bajaj Finance brand. With India’s housing needs continuing to emerge amidst rapid urbanization, more investor interest in housing finance stocks is likely.
